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Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121803  
Subject: New EIN for Revocable Living Trust? Date: 9/4/2012 4:42 PM
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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.

The IRS has just sent me a new EIN for the Revocable Trust. This is obviously different from my Social Security number.

Which number should I file under?
Thanks,
Wendy
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 116572 of 121803
Subject: Re: New EIN for Revocable Living Trust? Date: 9/4/2012 5:35 PM
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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.

Phil
Rule Your Retirement Home Fool

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Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 116573 of 121803
Subject: Re: New EIN for Revocable Living Trust? Date: 9/4/2012 7:24 PM
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Thank you for your response. I prepared the 1041 because someone (either the lawyer or a tax preparer) told me to.

Now I will stop.
Thanks,
Wendy

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Author: op456op Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 116575 of 121803
Subject: Re: New EIN for Revocable Living Trust? Date: 9/4/2012 11:49 PM
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Whew... Glad to hear that response Phil.

Thought I might be in trouble for not filing a 1041. My lawyer never mentioned it... correctly it seems.

Breathe easy Wendy!

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