Answer
Feb 09, 2024 - 12:54 PM
It may depend on which type of 1099 form you received.A 1099-INT is typically filed when an investment earns interest that is paid out to the registered owner. See below a list of reasons, why a 1099-INT would be filed.
File Form 1099- INT for each person:
You are able to send us the 1099-INT but we cannot take any action with it. Since the interest was generated by your checkbook control asset (the Grantor Trust), you should consult with a licensed tax professional to determine if filing taxes would be necessary due to the 1099-INT reported. If your CPA or attorney determines that you need to file taxes for your Grantor trust to report the interest earned or pay UBIT that may have been incurred, you will need to file for it’s own unique EIN number and work with your CPA to file any necessary taxes.
If you have any more questions, please schedule a call with us or visit our website.
File Form 1099- INT for each person:
- To whom you paid amounts reportable in boxes, 1, 3 and 8 of at least $10.
- For whom you withheld and paid any foreign tax on interest.
- From who you withheld (and did not refund) any federal income tax under the backup withholding rules
- regardless of the amount of the payment.
You are able to send us the 1099-INT but we cannot take any action with it. Since the interest was generated by your checkbook control asset (the Grantor Trust), you should consult with a licensed tax professional to determine if filing taxes would be necessary due to the 1099-INT reported. If your CPA or attorney determines that you need to file taxes for your Grantor trust to report the interest earned or pay UBIT that may have been incurred, you will need to file for it’s own unique EIN number and work with your CPA to file any necessary taxes.
If you have any more questions, please schedule a call with us or visit our website.
Please note, Madison Trust is a passive custodian and therefore, does not give legal, tax, or financial advice. Please consult with your tax adviser before making any investment decisions.