Partnership liquidating distributions property
The tax rules that apply to retirement plan distributions are explained in the following publications.
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For example, you must give your child's SSN to the payer of dividends on stock owned by your child, even though the dividends are paid to you as custodian.
The penalty is for each failure up to a maximum penalty of 0,000 for any calendar year.
However, the parent can choose to include the child's interest and dividends on the parent's return if certain requirements are met. For more information about the tax on unearned income of children and the parents' election, see Pub. Interest, dividends, and other investment income you receive as a beneficiary of an estate or trust is generally taxable income.
This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. If you received an option to buy or sell stock or other property as payment for your services, see Pub.If all of these statements are true, Form 8615 must be completed and attached to the child's tax return.If any of these statements is not true, Form 8615 is not required and the child's income is taxed at his or her own tax rate.You will not be subject to this penalty if you can show that your failure to provide the SSN was due to reasonable cause and not to willful neglect.If you fail to supply an SSN, you may also be subject to backup withholding.