I'm filing a final Form 1041 for my deceased parents living trust. The last time I filed a 1041 for this trust was 2001 and the two years prior to that. It's been 19 years and the trustee and address have changed since then. Do I need to file form 8822B with the change of address? Does a Form 56 also need to be filed? Or should I just mark the "initial" return box?
@KSK wrote:
Or should I just mark the "initial" return box?
Form 1041 and Form 56 should be sufficient, but you should indicate this is a final return if the trust has terminated (obviously, indicate initial and final if the return is both).
Can I mark the 2019 return as initial if a return was filed back in 2001? If I don't mark "initial" the software wants to know the address used "last year," but there was no filing last year (or any year since 2001).
why were no returns filed for 19 years? if you filed in 2001 then the 2019 return is not an initial return. you may want to discuss your situation with a tax pro. there may legitimate reasons that relieved the trustee of filing for some or all of those years but I can't see the trust document to know for sure or even guess. if there were filing requirements, you might get a notice from the IRS asking for those missing returns. if they were required, there could be penalties for failure to file.
@KSK wrote:
.....there was no filing last year (or any year since 2001).
You should review the filing requirements for trusts (link below). If a return or returns should have been filed for prior tax years, then you absolutely must consult a tax professional experienced in estate/trust taxation.