What is the name of your state (only U.S. law)? New York
As the trustee of an irrevocable trust, in order to curtail tax rate to the beneficiaries' estate distribution from nealy 20K worth of ordinary income(excluding the principal) tax assessed at trust rate (which is mid 30%), I mailed a W-9 form to each bene. The goal is, since I don't know these people and to prevent them from providing me with a false SSN#, I chose that form which has a perjury disclaimer. My accountant told me @ this year filing that I would need all bene. ssn# in order to file a fidiciary tax return for the next fiscal year.
One beneficiary returned the form, but fails to provide the sole information on that form for which it was designed:the SSN#.
Although it may not be a valid form for that exact purpose, but to protect myself, I had to formalize my request. As there are no other legal form out there that is suitable for that type of information.
Am I out of line here?
I am dealing with a non-sophisticated audience and I verbally explained to her in particular the reason for my request is to benefit them.
She has a propensity for deceipt i.e trying to beat the system and probably want to get the money w/o paying any income tax on it. Which is rather stupid. I would much rather paying below 28% than 36%.
Any input will be greatly appreciated. Thanks.