Personal Finance (Not Investing) • Tax return - Grantor irrevocable trust

I thought grantor trusts were reported on the grantor's return.

At one time, the trustee would get an EIN, and file a blank return with a separate sheet of paper setting forth the income that was taxable to the grantor, and the grantor reports the income.

However, Treas. Reg. § 1.671-4, https://www.law.cornell.edu/cfr/text/26/1.671-4, was amended in 1995. With a few exceptions, you now have a choice. Most trustees use the grantor's social security number, and don't file returns. Instead, the grantor includes the income. However, some trustees use the old method and file a blank return with a separate sheet showing the income that's taxable to the grantor.

Statistics: Posted by bsteiner — Mon Feb 26, 2024 3:23 pm — Replies 6 — Views 205

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