Quote Originally Posted by Nashville View Post
I've seen a lot in the last few years - An individual sets up a trust (mostly revocable) to embrace legal ownership of assets, but retains control of the assets and directs the income accordingly.

For the most part I've been taught that such a "trust" may be legal in the eyes of the state, but is a non-recognized entity by the IRS. Yet, somehow these "trusts" have a Federal ID#. Where did they come from? Who does the SS-4?

I'm finding out that BANKS are insisting on creating these numbers. I believe the banks have a choice between hiring a tax-wise person to determine whether a number is necessary, or simply requiring EVERY such entity to have one. Which of these options do you think the banks will choose?

The result is the issuance of a plethora of unnecessary numbers. There are only nine digits. You would think the IRS would run out of them.

What say ye?
Agree. Unnecessary potential problems and costs.

Ask the banker to talk to their legal department who hopefully have a Tax Attorney. Otherwise find a different bank.

If an EIN (vs. the person's social security number) is used there is the potential problem that the IRS would send notices asking where are the 1041 forms.

Whereas, if the Revocable Trust is created with the person's social security number, any Revocable Trust income would simply be reported on the 1040 form.