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Level 1
posted Jul 19, 2024 8:38:54 AM

Filing form 1041

Taxpayer had irrevocable trust since 2014. She was alive and she passed away May-27-2024. at this time we requested (as a trustee) EIN from IRS. letter tells me  that we did not  file form 1041 since 2014. I thought we need to file 1041 after taxpayer passed away.. Tax payer was filing form 1040 since 2014. Need help

Thanks

Sammy

0 5 6136
5 Replies
Level 15
Jul 19, 2024 8:55:20 AM

An irrevocable trust is a separate legal entity requiring the filing of form 1041 if income is produced.  This is as opposed to a living or revocable trust. 

Level 12
Jul 19, 2024 8:56:25 AM

at this time we requested (as a trustee) EIN from IRS.

And if you requested an EIN for the trust as anything other than a grantor trust, that's why you got the letter. Either that or you said the trust was established in 2014.....it wasn't.....the trust became a non-grantor trust and needed an EIN when the taxpayer passed.

Level 12
Jul 19, 2024 8:57:52 AM

An irrevocable trust is a separate legal entity requiring the filing of form 1041 if income is produced.

Not necessarily. An irrevocable trust can also be a grantor trust disregarded in whole or in part for federal income tax purposes.

Level 1
Jul 19, 2024 9:06:18 AM

it was revocable trust not irrevocable trust

Thanks

Sammy

Level 12
Jul 19, 2024 9:55:06 AM

it was revocable trust not irrevocable trust

Right. So the taxpayer got the letter because the EIN application said the trust began in 2014 when it should have said it began May 27th of 2024....the date of the passing. Pretty common mistake.