What is below was released Monday late.   As you will read they want us all to file for an IRS extension to our 2019 tax filing so this trust can get your IRS forms out to you.

I’m just the piano player – I didn’t write the music.

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—February 3, 2020—Woodbridge Liquidation Trust (the “Trust”) announced today that it anticipates that its 2019 trust grantor letters—documents required by trust beneficiaries to complete their 2019 income tax returns–will be completed and provided to beneficiaries after the April 15, 2020 return filing deadline.

Accordingly, the Trust advises that each trust beneficiary request an extension of the filing due date from appropriate federal and state taxing authorities.
A detailed letter to beneficiaries concerning the trust grantor letters and other federal income tax information regarding the Trust is available in the “Reports and Letters by the Liquidation Trustee” section of the Trust’s website at Trust. The Trust cannot provide tax advice to beneficiaries, and strongly encourages holder to consult their own tax advisors.

11 thoughts on “No One’s going to like this

  1. Hi Greg,

    Once again, thanks for letting us know what is happening.

    I was planning on declaring my $20,000 as income. So I don’t see why I need to wait for some paperwork from Woodbridge. Am I missing something?

    Gail

    Sent from my iPad

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  2. Thanks, Greg. Don’t really understand what they are doing. The money we get should not be taxable in any way, since it is our principal. Did print the information for my accountant.

    Louise

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  3. I printed out letter and did some searching online for 1041 Grantor letter and see plenty of CPAs giving two alternative ways to report the letter. The IRS Form 1041(like a 1040 for trusts) is used by the grantor (the liquidation trust) to file. The letter may or may not tell us which form to report it on some examples of the letter online tell the creditor (us) which form to file. One way is 1099 but is shouldn’t be as that would be reporting our investment return which shouldn’t be income. TurboTax board says to report on a K-1 form. This is only to report our changing basis in the trust until it is dissolved in future years. This Woodbridge process is like a festering boil that won’t heal.

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