I am the trustee....the money is invested in a bank CD. They have sent me (actually under the trust ID) only a 1099 INT form. I assume that the trust is responsible for the tax on the investment rather that the party that untimately gets the interest.
2007-04-10 12:53:38 · 3 answers · asked by domers13 2 in Business & Finance ➔ Taxes ➔ United States
The Trustee is responsible for making sure that the returns get filed for the Trust.
Under some agreements, someone else may file the return. That should have been decided when the Trusty was set up. It should be spelled out in the Trust documents or Will. However, in most cases the investment company/bank simply reports to the Trustee (the 1099INT) and it is up to you to file the proper federal and state forms. I would check with them to find out if they have any intention of doing the return.
Ultimately, it will be you that gets hit with penalties and interest if the returns do not get filed.
2007-04-10 13:05:23 · answer #1 · answered by MWMAMA 3 · 0⤊ 0⤋
You need to prepare the 1041 as trustee. If the trust income is required to be paid out under the will (simple trust) the income is taxed to the beneficiary on a Schedule K-1. If a discretionary trust (complex trust) the income is taxed to the beneficiary only if distributed - otherwise taxed to trust.
2007-04-10 14:37:02 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋
The trustee is responsible for the filing.
2007-04-10 13:03:22 · answer #3 · answered by Judy 7 · 1⤊ 0⤋