Thank you so much. Do I need to explain on the grantor's trust EIN coving 1/1/2020 - 9/16/2020 that the 9/16/2020 to 12/31/2020 income reported under that old EIN will be paid on the new EIN? How does the IRS know that the old EIN is being replaced by the new one? Will I have to do any more 1041s for the old EIN? How to correlate that the new EIN is replacing the old one that was only used for the grantor's trust?
One more question about the "65 day rule" - should I quickly (by 3/6) do a distribution to the two beneficiaries to make sure any income in 4Q2020 is paid out so that that income is not taxed at the higher trust rate, or do I not need to worry about this if I file the 1041 with Form 8855 (Sec. 645 election) such that estimates and taxes will not need to be paid until after the fiscal year? I have not made any distributions to any beneficiaries yet. And if I do a distribution immediately as part of this 65 day rule, do I need to issue a K-1 to the beneficiaries, which they will need to report for their 2020 taxes, or will it be reported on their 2021 taxes? Thank you so much!!
