Members of the Maryland Association of Certified Public...

Tax questions

March 15, 1997

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: I have a revocable trust agreement that has a tax number. In making out my income tax, how do I report it? Some of the assets are in the trust which has a tax ID number, and some of the assets are the Social Security numbers.

A: Under the current regulations, effective Jan. 1, 1996, grantor trusts (including revocable trusts) must file a return if income is received under the trust's tax ID number. The filing can be either:

a. Form 1099 from the trust to the individual for each type of income received by the trust or, b. Form 1041, U.S. Income Tax Return for Estate and Trusts, with an information letter issued to the individual (as under prior regulations).

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To ask a tax question, call Sundial at 410-783-1800. Call 268-7736 in Anne Arundel County, 836-5028 in Harford County and 848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after you hear the greeting.

Readers also can e-mail questions through The Sun's Web site -- www.sunspot.net.

Selected questions will be answered in the Business section. No questions will be answered by phone.

Pub Date: 3/15/97

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