Inheritance poses problems estimating tax due for extension filing

In 2005, I received distributions from an inheritance that seem to have triggered the need for me to be sent two Schedule K-1's and a Form 3520, from three separate organizations, the details of which need to accompany my

2005 tax return. To date, despite my repeated reminders, cajoling, and in some cases pleading, I've received none of these, and the prospects of receiving any of them, let alone all, before April 17th appear remote. It appears I'm forced to extend, then. Before I can file for an extension, however, I need to estimate, somehow, how much of this inheritance is likely to be listed on the K-1's as taxable. None of the agencies involved seems willing to offer any estimates at all (although one did suggest I "assume it's all taxable", which, for an inheritance on which death tax has already been paid, seems conservative to the point of stupidity). Anyone got any opinions on the best course of action here? Besides camping out in the offices of the various organizations involved and beating them over the head every 15 seconds with a large 2x4 until they come up with the required figures, is there a rule of thumb I could apply here, or other way to at least guess for myself what the taxable amount is likely to be? The Form 3520 is similarly subject to corporate heel-dragging. The IRS instructions for this one are vague, but suggest that under some circumstances it's best filed by me within 30 days of the distribution, which in this case would be March 30th, so even less contingency time here then. I haven't located a way to extend the filing deadline for this form yet, either. Form 3520 is coming from overseas, so there's not much IRS leverage to be applied there. Do I have any way to force taxability information out of them, or any reliable way to estimate it myself? Finally, anything I can do to stop this becoming an even worse headache? Either this year, or again in later years? Thanks.

> > > > > > >

"Simon Baldwin" wrote

Ah, sounds like you inherited the dreaded publicly traded real estate investment trust/partnership. A real PIA for those who have them. You can't sell it - ever (it's like a rule or something, just like time-shares).

The inheritance itself isn't taxable, but the income from the trusts or partnerships is. It can be in the form of operating income (or loss), rental income (or loss), capital gains (or losses) and include a host of other items that may or may not be of importance. One other thing, they may require multi-state filings, so be prepared.

Ask someone in your family to look at the returns of the person you are inheriting this monster from to tell you what types of income and the amounts these investments threw off. That at least, should put you close enough for government work. Surely someone knows what they did last year and can tell you with some certainty.

Find out what it is you are inheriting, and either keep it and deal with the reporting delays - sell it for whatever cash you can get out of it - or donate it to a charity.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net