robmotty

Thanks for the reply. It seems I left out some important facts. My clients/grantor are also the co-trustees of the trust. The sole purpose of the blind trust was to protect identity. My client has complete control of the trust as they cashed their check and immediately closed the bank account. Since the trust is a grantor type, it does not appear I even have the ability to ask for a refund as the instructions say to keep the first page blank.

I have a client whose attorney set up a blind trust to claim a large gambling prize which was reported on Schedule W2-G. The W2-G also had a large amount of withholding. I am treating the trust as a grantor type trust for income tax reporting purposes. The 1041 and IRS regs state to report on the grantor information letter attached to the return: "Any deductions or credits that apply to this income. Report these deductions and credits in the same detail as they would be reported on the grantor's return had they been received directly by the grantor" My two questions are 1) Am I correct to treat this trust as a grantor trust? 2) Is it ok to show the tax withholding as a credit on the information letter? I appreciate any help and guidance.