@taxdean wrote:
Unfortunately, due to worries about keeping reserves for possible tax consequences and some other bills, the distributions to the variable beneficiaries did not happen until January of 2022, so I imagine there will need to be one more year of trust returns.
Not necessarily; it is still possible to make this the final return.
The trust can make a 663(b) election to have the distributions made in January treated as if they were made in the prior year (i.e., 2021).
Further, the trust can still file a final return if there is nothing left (in terms of assets) except a small reserve for paying the likes of taxes and expenses.
