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Beneficiary refuses to give SS #.

 
 
Nan, EA in LA
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      01-14-2006, 04:25 AM
Client is executor/trustee and will file a 1041 with 5 K-1s
for herself and siblings. One brother is a pain in the ____
and refuses, among other things, to give his Social Security
number. I am thinking we should just file the K-1 with a
note to IRS that this person refuses to comply. Any other
suggestions?

Nan, EA in LA

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Arthur Kamlet
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      01-15-2006, 06:56 PM
Nan, EA in LA <(E-Mail Removed)> wrote:

> Client is executor/trustee and will file a 1041 with 5 K-1s
> for herself and siblings. One brother is a pain in the ____
> and refuses, among other things, to give his Social Security
> number. I am thinking we should just file the K-1 with a
> note to IRS that this person refuses to comply. Any other
> suggestions?


Can the distributions be held in escrow pending receipt of a
W-9?

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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Phil Marti
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      01-15-2006, 06:56 PM
"Nan, EA in LA" <(E-Mail Removed)> wrote:

> Client is executor/trustee and will file a 1041 with 5 K-1s
> for herself and siblings. One brother is a pain in the ____
> and refuses, among other things, to give his Social Security
> number. I am thinking we should just file the K-1 with a
> note to IRS that this person refuses to comply. Any other
> suggestions?


I'd send him a certified letter transmitting Form W-9 and
asking for its prompt return. As I recall the W-9 explains
legal requirements and backup withholding.

I seem to recall that some payors are required to backup
withhold if the payee refuses to provide a TIN. Be sure to
check into that.

--
Phil Marti
Clarksburg, MD

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MTW
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      01-15-2006, 06:57 PM
Nan, EA in LA wrote:

> I am thinking we should just file the K-1 with a
> note to IRS that this person refuses to comply. Any other
> suggestions?


Just thinking out loud... You ~might~ be required to
implement backup withholding in a situation like this.

MTW

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Hank Murphy
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      01-15-2006, 07:17 PM
If the anonymous son is under about 35, the client might be
able to request a copy of the decedent's 1991 tax return.
This is when the IRS first required SSNs for dependents
IIRC.

Hank Murphy
speaking only for myself

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Stuart A. Bronstein
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      01-15-2006, 07:17 PM
"Nan, EA in LA" <(E-Mail Removed)> wrote:

> Client is executor/trustee and will file a 1041 with 5 K-1s
> for herself and siblings. One brother is a pain in the ____
> and refuses, among other things, to give his Social Security
> number. I am thinking we should just file the K-1 with a
> note to IRS that this person refuses to comply. Any other
> suggestions?


There are requirements for backup withholding for someone
who won't give his SS number. When you do that you'll issue
a 1099 showing the distribution and the tax withheld. He
can file a return to get it back.

Stu

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Mark Rigotti
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      01-15-2006, 08:04 PM
"Nan, EA in LA" <(E-Mail Removed)> wrote:

Have you gone the W-9 route?????

If so file without and wait for the IRS to mandate the 30%
(I think) withholding on any distributions. With no tax
number the individual will not be able to get the monies and
you'll be able to have the last laugh.

Regards,

Mark

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Gary Goodman
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      01-17-2006, 02:08 AM
(E-Mail Removed) says...

> If the anonymous son is under about 35, the client might be
> able to request a copy of the decedent's 1991 tax return.
> This is when the IRS first required SSNs for dependents
> IIRC.


I thought it was 1987 that the requirement for SSNs started
to phase in.

My read on the original question is that the money has
already been distributed and the poster is ready to prepare
K-1s.

Gary

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E-mail to the above address is rarely read. If you want to
contact me directly, please send an e-mail to: gary at
gdgoodman dot com.

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David Woods, EA, ChFC, CLU
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      01-18-2006, 05:27 AM
"Nan, EA in LA" <(E-Mail Removed)> wrote:

> Client is executor/trustee and will file a 1041 with 5 K-1s
> for herself and siblings. One brother is a pain in the ____
> and refuses, among other things, to give his Social Security
> number. I am thinking we should just file the K-1 with a
> note to IRS that this person refuses to comply. Any other
> suggestions?


Live ammunition.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Ernie Klein
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      01-18-2006, 05:46 AM
"Stuart A. Bronstein" <(E-Mail Removed)> wrote:
> "Nan, EA in LA" <(E-Mail Removed)> wrote:


>> Client is executor/trustee and will file a 1041 with 5 K-1s
>> for herself and siblings. One brother is a pain in the ____
>> and refuses, among other things, to give his Social Security
>> number. I am thinking we should just file the K-1 with a
>> note to IRS that this person refuses to comply. Any other
>> suggestions?


> There are requirements for backup withholding for someone
> who won't give his SS number. When you do that you'll issue
> a 1099 showing the distribution and the tax withheld. He
> can file a return to get it back.


I have read many responses to the question that (almost all)
suggest backup withholding, but that assumes that the
distribution is in the _future_. Maybe I am reading the
question wrong, but the OP is asking about filing a K1 for
an estate which is usually only done _after_ the
distribution has been made.

Maybe I am reading this wrong, but assuming I am correct
(for the sake of argument), if all estate distributions have
been made (i.e. no assets left in the estate at all --
nothing to withhold), and all the estate is doing is filing
after-the-fact paperwork (k-1's), then what should/can the
estate do at this point?

--
-Ernie-

"There are only two kinds of computer users -- those who have
suffered a catastrophic hard drive failure, and those who will."
Have you done your backup today?

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