Trust and Taxes
I am a beneficiary of a trust. I do not received distributions from the trust, nor will I ever. The trust has filed a K-1 form claiming that funds have been distributed to me. These funds have not been distributed, and are still sitting in the trust account. I had to pay over $10K in taxes on money I did not receive. I have tried to contact the I.R.S. about this matter, and am getting the ''run around''.
What should I do?
1 Answer from Attorneys
Re: Trust and Taxes
Rather than the IRS, a better source for getting an explantion is the trustee and the trust's accountant. There are many kinds of trusts, and you need to understand the terms of the trust agreement before you can determine whether it is being administered properly and whether its tax reporting is in compliance with the rules. If the trustee won't talk to you or allow you to talk with the trust's accountants, you may need a lawyer in your area to get the information for you.