Is there a form that must be submitted to the IRS when a Grantor funds a complex, irrevocable trust, and does it need to be submitted with the grantor's taxes?

[IreneS]

The Grantor Letter or Information Sheet is a transmittal document, prepared by the Trustee.  The Trustee should send a copy of the Grantor Letter to the IRS (instead of a regular 1041 return).  It shows you (the beneficiary) as a recipient of various forms of income, and possibly having certain deductible expenses.

Enter the information listed in the Grantor Letter in the places where you normally would, had you paid or received these items directly instead of through a trust.

You report each income and expense item as if you had received an equivalent 1099, using the name and EIN of the Trust as the payer.  So treat interest as if a 1099-INT, dividends as if a 1099-DIV, Gains and Losses as if a 1099-B, etc.

Some of the more common items and where to add them include the following:

Income Items

Click on Federal Taxes > Wages & Income  [In TT Home & Biz:  Personal > Personal Income ]

• Taxable interest and dividends -  Interest and Dividends > Interest on 1099-INT [or Dividends on 1099-DIV]
• Ordinary income - Investment Income > Stocks, Mutual Funds, Bonds, Other [or one of the other categories listed]
• Capital gains and losses - Investment Income > Stocks, Mutual Funds, Bonds, Other

Deductible expenses

1. Click on Federal Taxes > Deductions & Credits  [In TT Home & Biz:  Personal > Deductions & Credits > I'll choose what I work on].
2. Go to the appropriate section, like Your Home > Property Taxes or Charitable Donations > Donations to Charity in 2015.