I have a client consisting of a nominee trust (US Trust) and a foreign corp 100% beneficiary of the trust. The trust owns rental properties in MA deeded in the name of the trust. The corp files an 1120-F every year to claim the rental activity. The trust files nothing because it is a nominee trust.
For 2018, the trust is going to have tax withholdings in the tax ID of the trust. Trying to confirm if we can have the nominee trust file a 1041 for 2018 with the only activity shown as withholdings passing over to the corp. Do you see any problem with this?