I have a 1041 question.

[lynchpinoftheuni]

I am the administrator of my father's estate. Except there is no estate - he had a joint checking account with me, and collected social security and a small pension. No real estate, nothing of value.

I had to open an estate account because he lived in a different state and I had 1 check to cash.  I cashed the check and closed the account. Then I got a notice that I had to fill out Form 1041. It doesn't seem as though this is the correct form. My father had nothing and I already filed inheritance tax in PA.  I can't even see where to enter his social security and pension. Help!

[Lisa995]

Did he pass in 2017?  His SS and pension would go on his final personal 2017 tax return, not on an estate return.

You would only need to file an estate return if the estate earned over $600 in income for the year...which doesn't sound like the case since all he had was a checking account.

[lynchpinoftheuni]

Yes, he passed in 2017.  I am afraid not to comply with the IRS letter, which I am sure was triggered when I opened  the estate account to cash a $500 rent rebate check.  I've been trying to contact the IRS without any luck.  If the letter says to file a 1041 and I file a 1040, what will happen?

[Lisa995 · Accepted solution]

You need to file the 1040 for 2017.  The 1041 only needs to be filed if the estate had $600 or more in income for 2017, which again, sounds like it did not.  That instruction that printed out when you applied for the estate EIN is just general information for estate returns, IRS has no clue at that point whether you have an estate filing requirement or not....in your case, you do not.

Decedent’s Estate
 In the case of a death, the executor must file a Tax Return for Estates and Trusts (Form 1041) for a domestic estate that has:
•Gross income of $600 or more for the tax year, or
•A beneficiary who is a non-resident alien

https://ttlc.intuit.com/questions/1901403-do-i-have-to-file-a-trust-tax-return

[dmertz]

When you obtain an EIN for the estate (necessary to open the estate account), you tell the IRS the whether the estate will be using a calendar tax year or a fiscal tax year.  You apparently indicated that the estate would be using a calendar year, so the IRS simply sent you a reminder that the filing deadline for a calendar-year estate is April 17,2018.  It's doesn't in any way indicate that the estate has received enough income that it is required to file an income tax return.

Even if the estate has received sufficient income to be required to file, the selection of calendar or fiscal year when obtaining the EIN does not actually establish the income tax year of the estate.  That's done when the estate's first income tax return is filed.  (§1.441-1(c)(1))  When obtaining the EIN for the estate, it seems that the IRS only asks for the anticipated estate income tax year to allow the IRS to send the filing-deadline reminder at the appropriate time.