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kjkrupsky
New Member

Does the grantor report income paid to a grantor trust by using (1) the payor's name and EIN, on the 1099-R given to the trust, or (2) the trust's name and EIN?

The grantor trust received a 1099-R from a payor (insurance co).  The trust filed a 1041 and sent an information letter to the grantor, showing the income.  Should the grantor report the income referring to (1) the name and EIN from the payor's 1099-R, or (2) the name and EIN of the trust, from the information letter?

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tagteam
Level 15

Does the grantor report income paid to a grantor trust by using (1) the payor's name and EIN, on the 1099-R given to the trust, or (2) the trust's name and EIN?

" The trust filed a 1041 and sent an information letter to the grantor, showing the income."

If the trust filed a 1041, then the information from the 1099-R (including the name of the trust and the trust's EIN) was shown on that form and the trust now becomes the payer and the grantor is the payee. 

See https://www.irs.gov/instructions/i1041#idm139674712727152

Consequently, the name of the trust and its EIN should be shown by the grantor.

View solution in original post

1 Reply
tagteam
Level 15

Does the grantor report income paid to a grantor trust by using (1) the payor's name and EIN, on the 1099-R given to the trust, or (2) the trust's name and EIN?

" The trust filed a 1041 and sent an information letter to the grantor, showing the income."

If the trust filed a 1041, then the information from the 1099-R (including the name of the trust and the trust's EIN) was shown on that form and the trust now becomes the payer and the grantor is the payee. 

See https://www.irs.gov/instructions/i1041#idm139674712727152

Consequently, the name of the trust and its EIN should be shown by the grantor.

View solution in original post

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