laval650
Level 3
12-07-2019
08:16 AM
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The trust is a brokerage account with dividends, interest and capital gains.
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itonewbie
Level 15
12-07-2019
08:16 AM
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If it's a grantor trust, the grantor is also the trustee, and the payor has the grantor's W-9 on file to issue 1099 with his/her name and SSN, there should be no problem. Otherwise, as the IRMN says, Uncle Sam will probably issue a notice as they'd be expecting a 1041 from the trust.
If these conditions are met except the brokerage does not have the grantor's W-9, you may like to suggest your client work with the brokerage to make the change to simplify the reporting going forward.
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Still an AllStar
Still an AllStar
IRonMaN
Level 15
12-07-2019
08:17 AM
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Getting a notice somewhere down the line from the IRS looking for failure to file penalties.
Slava Ukraini!
