Ephesians3-14
Level 8
10-23-2024
08:38 AM
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I have a client whose revocable trust owns the interest in his S Corp. Can I just use my client's SSN and name on the K-1 to keep things simple...or do I need to use the S Corp name and FEIN?
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Level 15
10-23-2024
08:51 AM
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If it is a simple living revocable trust, meaning all income is reported by the grantor, then yes the K1 should use his/her info
dascpa
Level 12
10-23-2024
01:56 PM
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Agreed with prior reply however be aware of the extremely serious pitfalls should (a) the trust turn into a post-death irrevocable trust or (b) the grantor becomes incapacitated and no longer has the "powers".
Ephesians3-14
Level 8
10-23-2024
02:20 PM
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Right - understood re after the grantor dies that things change from a tax standpoint.
Thanks for your help!