From: "jeffrey E." <jeevacation@gmail.com>
To: "Dlugash, Alan" ,
Subject: Fwd: Grantor Trust and Disregarded Entity Reporting
Date: Tue, 14 Apr 2015 16:41:33 +0000
Attachments: GRANTOR_TRUST REPORTING_MAP.pdf;
trust_letter_to_1041_APO2_DECLARATION.pdf;
trust_letter to_1041_BLACK_FAMILY 1997 TRUST.pdf
id like a call before 3 today to discuss
Forwarded message
From: Richard Joslin
Date: Tue, Apr 14, 2015 at 10:42 AM
Subject: Grantor Trust and Disregarded Entity Reporting
To: "jeffrey E." <jeevacation mail.com>
Cc: "Dlugash Alan" , Brad Wechsler < >, Richard
D'Agostino
Please review the proposed reporting for grantor trusts and plan below for disregarded LLc's. The plan is to file
(without extension) grantor trust tax returns by April 15.
Summary: Follow grantor trust reporting rules such that all items of income (loss) of grantor trusts are reported
entirely to the grantor under the grantor SSN. (see map attached)
Facts: Grantor trusts have EIN numbers, ie identification numbers other than the grantor's SSN. Grantor trusts
with EIN's must file Form 1041 and report items of income (loss) in a grantor letter or not file Form 1041 and
issue 1099-DIV/ 1099-INT to grantor. Under 1.641-4, the reporting by the grantor trust can change to SSN
reporting if the trustees of the grantor trust furnish the name and tax ID number of the grantor to each payor.
I have consulted with Alan Dlugash on the best way to file Form 1041 with disclosure of the underlying
partnership interests and to convert the grantor trust reporting to have the SSN of the grantor. Please see the
From 1041 attachment that Alan and I prepared. This reporting will ensure that Leon's return reports directly the
K1 information received from outside partnerships. This is the same method as was used to report partnership
items in tax year 2013.
ale member LLC's: Similar to grantor trusts, various single member LLC's have obtained EIN numbers. The
IRS indicates that single member LLC's should not request an EIN if the default tax classification of the LLC is
a disregarded entity. (Disregarded LLC's obtain EIN's for limited reasons: to filing Form 8832 (Classification
Election), for filing employment tax returns and excise tax returns, or for state reporting purposes.) No income
tax returns have been filed in the past for disregarded LLC's. To ensure that Leon's return reports directly the K1
information received from outside partnerships and that there is the possibility for K-1 matching and to remove
any doubt that the LLC is a disregarded entity, the intention is to reach out to partnerships where LLC have
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interests and furnish a W-9 with the LLC name and the name of the owner/ SSN. This will also ensure
compliance with IRS rules for reporting for disregarded entities. Alan is in agreement with the above.
Richard Joslin
CFO
Elysium Management LLC
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