1041 is for more than $600 after death before distribution to beneficiaries, but it starts on Date of Death, and rest of year prior to death is on final 1040, yes?

[ScruffyCurmudgeon]

True but frankly I have not seen the IRS make these assessments for Estates that were under $1 million or more -  The IRS almost ignores Trust and Estate filings of small dollar amount. - Check my comment elsewhere about just how bad it is.

[ScruffyCurmudgeon]

@tagteam  A close friend of mine was until retirement the Lead or Senior Agent in the Estate Tax and Trust division.  I brought to him the following true example of just how poorly the Service handles 1041 filings.  

An attorney for a family [yup, another one who should never touch estate work] set up bypass marital trusts for a couple.  He filed SS-4's for the two Revocable Living Trusts and received CP-575's for them.  [Don't comment, I know!] He then had the couple transfer their assets in to accounts registered in the names of the trusts and the account registrations at brokerages and mutual funds used these EINs and not the personal SSNs.

For 20 or more years Forms 1099-DIV/INT/B were filed against the EINs and not against the SSNs.  For 20 years or more no 1041s were filed [yes I know, in fact as disregarded entities, but you get the picture].  For 20 years the Service never questioned the sizable income being reported by payers with no corresponding filings of that income.

I got involved when the first of the couple passed away and the attorney attempted to file a Form 1041 using the EIN.  I spent at least a month with Ogden Entity Division getting the EIN reactivated - as the Service deactivated the EIN for lack of filing but never ever chased the income!