The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: New EIN for Revocable Living Trust?||Date: 9/4/2012 5:35 PM|
|Author: TMFPMarti||Number: 116572 of 121482|
In 2000, when my lawyer wrote my Revocable Living Trust, he told me that it should have the same TIN as my Social Security number as long as I am alive. I have been doing that ever since. Every year at tax time, I send a 1041 form of the trust attached to the joint 1040 that my husband and I file jointly.
I have to ask, whatever possessed you to prepare a 1041? I have this feeling that 12 years ago, when your lawyer told you to use your SSN, you assumed he meant on a 1041, and he assumed that you understood he meant as the TIN on your accounts. Like they say about assumptions, ....
You never should have prepared, let alone filed, a 1041. This type of trust is ignored for tax purposes. I suspect things went along smoothly all these years because IRS just ignored the 1041 or never looked at it in the first place. Somehow your latest one took on a life of its own, and that requires an EIN. Voila!
Stop preparing 1041's. Ignore the EIN. If the IRS inquires after a 1041 for the trust write back to them telling them it's a passthrough entity and all income is reported under your SSN.
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