Have one tax client who filed their 1041 and 1041A Trust returns by
However, they did not file the two prior year trust returns. No tax
been owed on these returns from the trust. How do we correct this
What makes you think that there is such a thing as a 1041A form?
Read the 1041 instructions to determine if this trust needed to be
filed in the past. If so, just file it on the appropriate years form.
If any penalty is due, the IRS will bill you.
Based on the tone of your question, are you sure that you are
competent to file such a return?
Is this for a living trust? If so, then a 1041 is due, but the
profits are reported on the taxpayers 1040, so 1041 will be all
blank. The penalty for filing late is 25% of tha tax due, which is
zero. I'm not aware of any dollar amount penalties. My
recommendation would be to not file anything (if this is a living
trust), but look for other opinions on the matter.
Because there is such a thing. More precisely it is Form 1041-A. "U.S.
Information Return Trust Accumulation of Charitable Amounts". "The
trustee must file Form 1041-A for a trust that claims a charitable or
other deduction under section 642(c) unless an exception applies."
The only way to achieve higher degrees of competence is to push yourself
beyond your current level, this group among others is one way to do that.
In the IT industry, a standard response to questions of this type is
"RTFM". While the same general concept applies to taxes, what is
missing is the ability to easily set up a test system. If only we could
send in "test" tax returns and get a clue what the IRS *would* do.
Not correct. A Living Trust is considered a "disregarded entity" by
the IRS, and generally has no EIN and no requirement to file a 1041
Fiduciary return. All income and expenses are reported on the owner's
?The penalty for filing late is 25% of tha tax due, which is
I've seen a letter from the IRS aftet the paperwork was done and the
living trust was created, and it says a form 1041 is due by April 15,
2005. So then I was assuming that a 1041 is required. But the person
did not file the 1041, and nothing happened.
========================================= MODERATOR'S COMMENT:
Sounds as if someone took out an EIN for the living trust, an
unnecessary complication that probably generated the IRS notice
Not the first time the instructions for Form SS-4 have been vague at
best. For a trust, they ask "what date was the entity created"? After
you learn the hard way, you know what to answer -- the date the trust
became irrevocable (typically, at death of the grantor).