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?
- posted 5 years ago