Thanks so much for the info! For several years prior to my mom's passing on 9/16/2020, the trust was in a separate EIN, and I had become successor trustee. During those years as trustee, I filed a 1041 grantor's trust listing INT/DIV income under the EIN, and my mom still paid taxes for that income on her 1040 (under her own SSN). The last 1041 grantor's trust I did for the EIN was for the short year of 1/1/2020 through 9/15/2020. I filed that in April 2021, again paying all taxes through 9/15/2020 on her final 1040 form.
I found a lot of documentation indicating that it would be wise to do a Sec 645 via Form 8855 primarily because of the ability to do a single return and because of the avoiding of estimated tax. And yes, the trust had no tax liability prior to her passing but only because it was a grantor's trust. So, then it's not exactly the initial return, right? Because of this, I didn't check the box for initial return, just final return. I suppose you're going to suggest I should have gotten another EIN for the trust which became irrevocable, but I was already trustee, and moving assets for 15 accounts (brokerages and banks) would have been a hassle. I also read that it was not entirely necessary because I was already trustee. Nonetheless, I actually did request an irrevocable trust EIN back in April 2021, so I have one, but I never moved assets to it. I just distributed everything to myself and the other beneficiary from the old revocable trust EIN.
I am mostly concerned that I did not pay trust estimates and don't want any penalties, and everything I read indicates that only an estate can do the fiscal calendar year. The implication is that if I was not doing sec 645, then I should have filed for the short year 9/16/2020 - 12/31/2020 in April 2021, and then I'd have to file again because assets were not yet distributed.
One more question - if my mom received a CA state tax refund for 2020 on her final 1040, do I have to include that on the 1041?
Thank you again.
