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#2017101 - 05/29/15 07:31 PM 3rd Party Escrow Agent Account
OliverQ Offline
Member
Joined: Feb 2011
Posts: 96
We have some escrow agent accounts that we are trying to figure out the best way to title. We have a third party company acting as escrow agent with a sole member LLC as the beneficiary using the sole member's SSN as the LLC's tax ID number. Does the sole member need to be named in the title? If so, how should the title read?

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General Discussion
#2018584 - 06/04/15 10:26 PM Re: 3rd Party Escrow Agent Account OliverQ
OliverQ Offline
Member
Joined: Feb 2011
Posts: 96
Anyone want to touch this?

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#2018806 - 06/05/15 07:08 PM Re: 3rd Party Escrow Agent Account OliverQ
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
How well do you know how your 1000 reporting works? Does it always report the taxpayer as whatever is on line 1 of the account setup? The answer to that question will inform the answer to your question.

If you have to have line 1 match the TIN used on the account, I'd title it this way:

[SOLE MEMBER'S NAME] MBR
[LLC NAME]
[AGENT NAME], ESCROW AGENT
ADDRESS

If you don't have good controls on teller decisions (teller terminal alerts to let them know not to deal with anyone other than the named escrow agent), that styling can be a problem.

If your system allows you to pick the line that is reported in any 1099 filing (or lets you otherwise designate what info goes to the IRS), here's another option:

[AGENT NAME], ESCROW FOR
[LLC NAME]
[SOLE MEMBER NAME] MBR
ADDRESS
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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