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TIN for grantor trust

I am the grantor of a "grantor trust" that has a savings account at a local bank. I have provided the bank with my SSN and I have reported the interest income on my tax return for several years. According to instructions for Form 1041, this is considered Optional filing method number 1. About a year ago, I got a W9 form asking for the " correct" TIN for the trust. I responded in a short note that the current SSN was the correct TIN. However, I just received a letter from the bank that stated that the IRS has notified the bank that the SSN does mot match it's records and the trust will be subject to back up withholding unless they get the "correct" TIN.

Kind of frustrating since I feel I am specifically following the IRS instructions. Anyway, I wonder if others have any thoughts. Should I just get the trust a TIN and still report the interest on my tax return?

Thanks

Reply to
stevens744
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Treasury Regulations §301.6109-1(a)(2) states that a grantor trust that is treated as owned by a single person under the grantor trust rules does not need to obtain a taxpayer identification number if the trustee provides both the name and taxpayer identification number (usually the SSN) of the grantor treated as the owner and the address of the trust to all payors of income to the trust.

Reply to
Alan

Whatever method banks and such use to verify SSNs and TINs doesn't work very well. I have an EIN that I got ages ago for a sole proprietorship, and that I also use for a second sole proprietorship with a different name. I am fairly sure that the IRS wants me to use the same EIN for both of them.

I get a trickle of income from Google ads, and every couple of months Google sends me a note that the EIN is wrong, fix it or they won't pay me. I have tried both my SSN and my EIN, and it doesn't like either one. My guess is that some database has the EIN associated with the first proprietorship, and I'm using the second, and that's too complicated for it to understand.

In practice, I send in either my SSN or EIN, tell them it's correct, and they pay me until the next time they tell me it's wrong, and we repeat the charade.

I suppose you could try and find someone at the bank who can tell you what's going on. Or you could spend three minutes on the IRS web site and get a TIN.

Reply to
John Levine

are you sure you are using the current version of form W9 and filling it out correctly? this used to be a problem with a guy's disregarded LLC, but the new form and instructions cleared up the problem.

NAME= YOUR NAME Business Name/disregarded entity = trust name check box: trust/estate

Reply to
Pico Rico

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