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Form 1099-R For Sec 1035 Annuity Exchange In a Trust Account

Years ago my parents set up a trust for my kids (two account in the same single trust for both of two kids) and purchased a tax-deferred annuity. I am the trustee. We can debate the wisdom of this and the investment chosen, but that is not the nature of my question. In 2006 as trustee I rolled the annuities from Allstate to Vanguard. Today I received, for each account, Form 1099-R showing a total distribution and the basis (contributions). The distribution code is marked "6" which is for a tax-free Section 1035 exchange. Do I need to file a Form 1041 for the trust (there is no other income or transactions in this trust) showing this rollover, or does the distribution code "6" calm the IRS computers that this is a rollover??

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Reply to
D.D. Palmer
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I'd file the 1041

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-----> real address on hobokeni or hobokenx

Reply to
Benjamin Yazersky CPA

I looked at the 1041 and could not find where to report

1099-R income then where to reconcile the taxable amount as zero. Any suggestions?
Reply to
D.D. Palmer

I don't have the 1041 instructions in front of me right now, but you should read them carefully. It might indicate where it goes. I would possibly attach a schedule showing the transactions. Another reason to file a 1041 is that it starts the statute of limitiations. ___________________________________

-----> real address on hobokeni or hobokenx

Reply to
Benjamin Yazersky CPA

The instructions explicitly tell you to use Line 8. And, if that is the only "Other Income", you don't need a separate schedule. That said, as there is no taxable income to report, Line 8 would be zero. I would normally agree with Benjamin about starting the SOL clock, but in this case I would not file if there were no entries anywhere else in the Income section.

-- Alan

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Reply to
A.G. Kalman

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