|
#2
03-21-2009, 08:52 PM
| |||
| |||
 Re: Newbie Trust Question - No 1041 required? in article 32d73c32-4665-4503-8cbc-2932efdc32b1...oglegroups.com, Norm at norm.pinnacle[at]gmail.com wrote on 3/19/09 9:51 PM: - quote - > I have a client who walked in with income from two sources - one
under her SSN but not so happy when they go looking for the 1041 and its> source associated with her own social and another source associated > with a trust TIN. (AB trust established at the time of spouse death.) > The 2007 return did not include K1 income. Instead, the sources of > income associated with a trust TIN were included on a personal return > as income / dividends without a separate accounting. > > From what I have been able to identify, it seems that a 1041 should > have been filed. Are there circumstances where this isn't necessary? The IRS will be happy to accept the taxes on income that was not reported associated income. 1041 is required if over the filing limit. Uncompensated advice guaranteed correct or double your money back Frank S. Duke, Jr. CPA Cincinnati, OH USA -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
|
#1
03-20-2009, 03:59 PM
| |||
| |||
| Re: Newbie Trust Question - No 1041 required? "D. Stussy" <spam[at]bde-arc.ampr.org> wrote: - quote - > "Norm" <norm.pinnacle[at]gmail.com> wrote
Yes, that's normally how these things work - on the death of a spouse> > I have a client who walked in with income from two sources - one > > source associated with her own social and another source > > associated with a trust TIN. (AB trust established at the time > > of spouse death.) > > > The 2007 return did not include K1 income. Instead, the sources > > of income associated with a trust TIN were included on a personal > > return as income / dividends without a separate accounting. > > > > From what I have been able to identify, it seems that a 1041 > > > should have been filed. Are there circumstances where this isn't > > > necessary? > See the regulations under IRC Sections 671-679 for details. > Originally, it it sounds like a grantor trust (no 1041 filing > requirement), but the death of the spouse may have changed things. the family trust gets split in two, with one half continuing to be revocable (e.g. grantor trust) and the other half becoming irrevocable (no longer a grantor trust). Also normal, the irrevocable trust pays all its income to the surviving spouse, so from a practical standpoint the result is the same - the irrevocable trust gets a deduction for all its income, and the surviving spouse is taxed on it. But I believe the 1041 is still required even though, after the deductions, it has no taxable income. Stu -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
|
03-20-2009, 03:20 PM
| |||
| |||
| Re: Newbie Trust Question - No 1041 required? "Norm" <norm.pinnacle[at]gmail.com> wrote in message news:32d73c32-4665-4503-8cbc-2932efdc32b1[at]g38g2000yqd.googlegroups.com... - quote - > I have a client who walked in with income from two sources - one
See the regulations under IRC Sections 671-679 for details. Originally, it> source associated with her own social and another source associated > with a trust TIN. (AB trust established at the time of spouse death.) > The 2007 return did not include K1 income. Instead, the sources of > income associated with a trust TIN were included on a personal return > as income / dividends without a separate accounting. > > From what I have been able to identify, it seems that a 1041 should > have been filed. Are there circumstances where this isn't necessary? it sounds like a grantor trust (no 1041 filing requirement), but the death of the spouse may have changed things. -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
|
#-1
03-20-2009, 12:51 AM
| |||
| |||
| Newbie Trust Question - No 1041 required? I have a client who walked in with income from two sources - one source associated with her own social and another source associated with a trust TIN. (AB trust established at the time of spouse death.) The 2007 return did not include K1 income. Instead, the sources of income associated with a trust TIN were included on a personal return as income / dividends without a separate accounting. - quote - > From what I have been able to identify, it seems that a 1041 should have been filed. Are there circumstances where this isn't necessary? -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
Similar Threads | ||||
| Thread | Forum | Replies | Last Post | |
| 1041 and 1041A Trust returns mich_b01: Have one tax client who filed their 1041 and 1041A Trust returns by 4/15/08. However, they did not file the two prior year trust returns. No tax... | Taxes | 6 | 04-26-2008 02:18 AM | |
| Simple Trust 1041 Stuart Bronstein: I have a question concerning an irrevocable simple trust. That is to say that it's an irrevocable, non-grantor trust that, by its terms,... | Taxes | 8 | 03-11-2008 01:12 AM | |
| Advice Needed: 1041 for Trust A.G. Kalman: I'm helping my son prepare the first 1041 for an irrevocable trust that came into existence upon the death of the grantor, a Florida resident. It... | Taxes | 2 | 03-30-2007 07:18 AM | |
| Another 1041 / trust question JoeTaxpayer: With all the tax information out there, there seems to be very little information outside of IRS.gov. I've set up and been funding an irrevocable... | Taxes | 1 | 03-08-2005 09:37 AM | |
| Taxes on a Residual Trust (1041) Avrum Lapin: If the residual (decedents) trust of a family trust holds tax free Municipal bonds does it have to report that interest on the 1041? If so where? ... | Taxes | 2 | 05-05-2004 07:16 PM | |
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
