Hi there! I'm in a similar situation with 2 beneficiaries just refusing to give me their SS# after I repeatedly explained...How does one go about your option 1 within TT Business (let the estate pay it's own taxes, no K1s)??
The trust I'm managing has no significant monetary gain, only losses and thus, no taxable income.
This is the final return for the estate trust, I'm just trying to wrap this all up and sick of dealing with the beneficiaries 🙄
yeah, the benes might be able to use the loss so you can't not send them their k-1s.....best to follow the pain in the %$& tax law.
No, you would still need to file the K-1s without the social security. The k-1 must be issued for all beneficiaries. If a beneficiary refuses to comply and provide their SSN, a signed affidavit will need to be sent with the return explaining the beneficiary refused to comply. The return must be mailed in so the affidavit can be submitted with the return.
Is this affidavit an actual IRS form? If so, what is the number?
No, there isn't an IRS form for the affidavit. As @tagteam stated earlier in this thread:
You can easily generate a demand letter yourself and mail it to the noncompliant beneficiary(ies). There are also a number of sites with templates for affidavits and all you need to do is have them notarized.
Treasury Regulations § 301.6109-1 addresses this situation under (c) Requirement to furnish another's number
If the person making the return, statement, or other document does not know the taxpayer identifying number of the other person, and such other person is one that is described in paragraph (b)(2)(i), (ii), (iii), (vi), (vii), or (viii) of this section, such person must request the other person's number. The request should state that the identifying number is required to be furnished under authority of law. When the person making the return, statement, or other document does not know the number of the other person, and has complied with the request provision of this paragraph (c), such person must sign an affidavit on the transmittal document forwarding such returns, statements, or other documents to the Internal Revenue Service, so stating.
No, there isn't an IRS form for the affidavit. As @tagteam stated earlier in this thread:
You can easily generate a demand letter yourself and mail it to the noncompliant beneficiary(ies). There are also a number of sites with templates for affidavits and all you need to do is have them notarized.
Treasury Regulations § 301.6109-1 addresses this situation under (c) Requirement to furnish another's number
If the person making the return, statement, or other document does not know the taxpayer identifying number of the other person...such person must request the other person's number. The request should state that the identifying number is required to be furnished under authority of law. When the person making the return, statement, or other document does not know the number of the other person, and has complied with the request provision of this paragraph, such person must sign an affidavit on the transmittal document forwarding such returns, statements, or other documents to the Internal Revenue Service, so stating.