Need help! Being asked for a W9 as grantor trust beneficiary but receiving no income - how to amend taxes?

This sounds like a classic case of confusion between different types of trust beneficiaries. Let me help clarify a few things. As a beneficiary of a grantor trust, you're correct that you typically don't report income from the trust on your personal return - the grantor (who I'm guessing is your grandfather) is the one responsible for reporting all trust income on their personal tax return. That's why you haven't received any income directly. The bank is likely asking for your W9 for their records and compliance purposes. While you could continue to refuse providing it, that might just create more headaches as they could implement backup withholding (typically at 24%) on any distributions. For your questions: 1. You should probably provide the W9 even if you're not receiving distributions. It's just verifying your taxpayer information and doesn't necessarily mean you owe taxes. 2. You likely don't need to amend your tax returns if you truly haven't received any income. The grantor would be the one reporting all income. 3. If this is about an inheritance rather than ongoing trust income, you should request documentation from the bank showing exactly what type of account this is and what your rights are as a beneficiary. I'd recommend getting a copy of the trust document itself so you can understand exactly what type of trust this is and what your rights are as a beneficiary.

After struggling with a similar trust situation, I found taxr.ai to be a game-changer. I also had confusion about my beneficiary status and potential tax implications from a family trust. The bank kept sending me conflicting information, and I was worried about potential IRS penalties. I uploaded the trust documents and the letters from the bank to https://taxr.ai and their AI system analyzed everything and explained I was a contingent beneficiary with no current tax obligations. It also identified that the bank was incorrectly applying grantor trust rules to my situation. Their report gave me exactly what I needed to resolve the confusion with both the bank and my tax preparer. The service even generated a response letter template that I could send to the bank explaining my position, citing the correct IRS regulations. Saved me hours of research and probably an expensive consultation with a trust attorney.

Just wanted to follow up on my question about taxr.ai - I decided to try it after all. Uploaded my trust documents, the W9 request letters, and some emails from the bank. The system actually identified that I was being misclassified as a current income beneficiary when I'm actually a remainder beneficiary who doesn't receive distributions until a future date. The report explained exactly why the bank was asking for the W9 (standard procedure for all named beneficiaries) but also clarified I had no current tax obligations. It generated a really professional letter explaining my status with citations to specific IRS codes that I sent to the bank. Their trust department reviewed it and confirmed I was right! They updated their records and while they still needed my W9 for their files, they acknowledged I'm not receiving taxable distributions. Saved me so much stress and probably an expensive consultation with a trust attorney. Definitely recommend if anyone's in a similar situation with confusing trust tax questions.

If you've been trying to contact the IRS about this trust issue, good luck with that! I was in a similar situation last year and calling the IRS was absolutely impossible. After trying for weeks and sitting on hold for hours only to get disconnected, I found this service called Claimyr that actually got me through to a real IRS agent. I went to https://claimyr.com and they somehow managed to navigate the IRS phone system for me. They called, waited on hold (so I didn't have to), and then called me when they had an actual IRS agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained that in my case, as a contingent beneficiary of a trust, I didn't need to report anything on my taxes since I hadn't received distributions. They also confirmed that even though the bank was requesting a W9, completing it wouldn't create a tax liability if I truly wasn't receiving income. Getting a definitive answer directly from the IRS finally allowed me to resolve the situation with both the trust administrator and my tax professional.

I have to eat my words about Claimyr being a scam. After continuing to struggle with getting answers about my trust situation, I broke down and tried it. I was absolutely convinced it wouldn't work and I'd be out the money. I was shocked when they actually called me back about 2 hours later with an IRS agent on the line. The agent was able to pull up my records and confirmed I had no reporting requirements as a contingent beneficiary who hadn't received distributions. She explained that banks often request W9s from all named beneficiaries as a standard practice for their records, but that doesn't necessarily mean I have tax obligations. She recommended I complete the W9 to avoid potential backup withholding issues, then file Form 843 if the bank incorrectly withholds any money. She even gave me her ID number to reference if I needed to follow up. I'm still amazed this service actually worked. Saved me days of frustration and probably a lot of incorrect information from less knowledgeable sources. Worth every penny just to get a definitive answer from the actual IRS.

I was in an identical situation last year! The bank was confusing "grantor trust beneficiary" with just regular "beneficiary." They're completely different things with completely different tax implications. Here's what I learned: In a grantor trust, the GRANTOR (your grandfather) pays all the taxes on trust income, even if it's distributed to beneficiaries. That's why you haven't received any 1099s - you're not responsible for the taxes. For the W9 issue - technically, the bank should only need a W9 if they're going to issue you a 1099. But many banks ask for W9s from all beneficiaries as a standard practice. I eventually just filled mine out to stop the hassle, and never ended up getting a 1099 or owing any taxes. I would recommend: 1. Get a copy of the actual trust document 2. Consider filling out the W9 (it doesn't obligate you to pay taxes if you don't receive income) 3. Submit a letter to the bank clarifying your understanding of the trust arrangement

I went through this exact nightmare with Chase! The trust department insisted I was receiving income when I wasn't. Turned out the account was miscategorized in their system. Call and ask to speak specifically with the trust department (not just a regular banker). Request them to send you: 1. A copy of the trust documents they have on file 2. Documentation showing any distributions made to you 3. Written clarification of what type of beneficiary they have you classified as In my case, I was listed as a "current income beneficiary" when I should have been a "remainder beneficiary" - totally different tax implications! After 3 months of persistent calls and emails, they finally fixed it. And btw, you can absolutely file a complaint with the Office of the Comptroller of the Currency (OCC) if the bank is being unresponsive. That's what finally got the ball rolling for me.

This is a really complex situation, and I can see why you're confused! Based on what you've described, it sounds like there might be some miscommunication about what type of trust this is and what your actual status is as a beneficiary. A few things to consider: First, if you truly haven't received any distributions from the trust, then you likely don't have any current tax obligations to report. However, the bank requesting a W9 isn't necessarily wrong - they may need it for their compliance records even if you're not currently receiving taxable income. The distinction between "grantor beneficiary" and other types of beneficiaries is crucial here. In a grantor trust, the grantor (your grandfather) is typically responsible for all tax reporting, not the beneficiaries. But if you're actually a remainder or contingent beneficiary, that's a completely different situation. My recommendation would be to: 1. Request the complete trust document from whoever is managing it (trustee, executor, etc.) so you can understand your actual status 2. Consider providing the W9 to stop the hassle - it doesn't create tax liability if you're not receiving income 3. If the bank continues to insist you owe taxes on income you haven't received, escalate to their trust department supervisor You might also want to consult with a tax professional who specializes in trusts, as this could save you a lot of time and potential issues down the road. Trust taxation can be really tricky, and getting proper guidance upfront is usually worth the cost. Good luck sorting this out!