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Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
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 121219
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 Top Recommended 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 121219
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 121219
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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