Grantor Trusts and Income Tax Reporting Requirements: A Primer

A trust is a “grantor trust” for income purposes to the extent that under the rules articulated in subpart E (section 671 through 679) of part 1 of subchapter J and chapter 1 of the Internal Revenue Code of 1986, as amended, the trust’s income, deductions, and credits against tax are attributed to its grantor or its beneficiary. A trust may be a grantor trust in its entirety or only in part, and may be a grantor trust with respect to one or more taxpayers.