Grantor Trust Information Letter

[stoneycrusty]

What is the name of your state (only U.S. law)?Ohio
Could someone explain what a grantor trust information letter is? I was a victim of securities fraud. The entity I originally invested in was turned into a trust (along with many other entities involved) and is being sold to a buyer. I received 40% of my initial investment in Dec. 2008 with the other 60% supposedly to follow soon. I have received my 2008 Form 1099-DIV but the letter accompanying it stated that I cannot file my 2008 taxes until I receive the grantor trust letter which I am still waiting on. I am very anxious to file my taxes for the simple fact that I have been laid off since Oct. 2008 and my wife since right before Xmas. Our tax return would really help right now. Why do I have to wait for this letter? Thanks.

 

[tranquility]

File your taxes and amend. However, the letter may cause you to have a greater amount of income and you will need to pay it back with interest and penalties if you don't report properly. It is impossible to know what the letter will contain without specific facts from your situation.

 

[Dandy Don]

Do a GOOGLE search using that phrase and you will see some mentions come up.

 

[stoneycrusty]

Am I understanding correctly?

So, if the trust itself had taxable income last year then I would be responsible for paying taxes on MY portion of the taxable income, if any. Then I also pay tax on the income from distributions that I receive from the trust. Looks like it's in my best interest to just wait for the letter before heading to an accountant. Thanks for the replies.