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Subject Author Date
1041 and 1041A Trust returns mich_b01 04-24-2008
Posted by mich_b01 on April 24, 2008, 9:41 pm
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 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
has
been owed on these returns from the trust. How do we correct this
issue?

--
<< ------------------------------------------------------- >>
<< 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. >>
<< >>
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Posted by Herb Smith on April 24, 2008, 10:31 pm
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> 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
> has
> been owed on these returns from the trust. �How do we correct this
> issue?

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?

> << ------------------------------------------------------- >>
> << 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 atwww.asktax.org. � � � �
� � � � >>
> << � � � � Copyright (2007) - All rights reserved. � � � � >>
> << ------------------------------------------------------- >>

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

Posted by Mark Bole on April 25, 2008, 12:59 pm
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Herb Smith wrote:
>> 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
>> has
>> been owed on these returns from the trust. �How do we correct this
>> issue?
>
> What makes you think that there is such a thing as a 1041A form?

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."


>
> 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?


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.

-Mark Bole

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on April 25, 2008, 12:21 pm
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> 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
> has
> been owed on these returns from the trust. How do we correct this
> issue?

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.

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

Posted by Herb Smith on April 25, 2008, 7:50 pm
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On Apr 25, 9:21�am, "removeps-gro...@yahoo.com" <removeps-
gro...@yahoo.com> wrote:
>
> > 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
> > has
> > been owed on these returns from the trust. �How do we correct this
> > issue?
>
> 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.

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
1040 return.

�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.

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

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