My father received an inheritance from his mother's trust (Canadian) when she passed away and is now required to file form 3520. He was a beneficiary with no insight on trust management or other powers. The information received from his mother's attorney included only the final balances of assets within the trust, and his percentage share as a beneficiary.
In filling out Part III of the form, schedule C requires form 4970 to be attached for accumulation distribution. The very first line of form 4970 requires completion of form 1041 and schedule J to form 1041. My father has not received adequate information to complete all of these forms, and frankly they don't all seem relevant. Can anyone help me understand what the reporting requirements really are?
It seems form 3520 is absolutely necessary to file, but form 4970 and form 1041 do not seem feasible to complete. Is there a way to avoid form 4970 and 1041 in this situation without incurring the steep IRS penalties?
Thank you in advance!
