I'm filing an estate income tax return for my mother who died July 2017. Do I need to file a return by April 17th or is it after the fiscal year ends (i.e., June 30th)?

[Mark477]

Tried to file using TT Business but the return was rejected saying that the Tax Period End date must be less than the Received date.  I don't see an option to select the Calendar Year of 2017 versus the TT plugged Fiscal Year dates of July 1, 2017 to June 30, 2018.  Also, if using the Fiscal Year dates how do I handle estate income from 2018 that I won't receive statements for until next year (i.e., I have 1099s for 2017 for the estate but nothing that would cover 2018 yet).

[LudwigVan_fan · Accepted solution]

I'm sorry to hear of your mother's passing.  Condolences to you.

There are two possible tax returns that need to be filed.

One is the final 1040 of your mother.

The second is a possible Form 1041.  The year begins on the first day after your mother's death in July of 2017.

You can choose to make it a short year and end it December 31, 2017; which would make it due April 17, 2018.

Or, you can choose to have the year end June 30, 2018. (or another month end date before June 30, 2018; but not after; you can't have a return period longer than one year)  Which would then be a due date of October 15, 2018/

Here is a link to Publication 559.  Look under when and where to file.

https://www.irs.gov/pub/irs-pdf/p559.pdf

If you choose a fiscal year ending in 2018, you will need to manually maintain records of income expenses, etc. for the months in 2018.

Also, statements for your mother's 2017 1040 may or may not be correct.  Some statements may contain income received by the estate.  Thus, they'll need to be reported on the 1040 as gross, and then reduced for amounts reported on the 1041.  IMHO, this is best done by attaching a statement.

[mrsnjr]

I'm also sorry for your loss.  Since I was in a similar situation in 2017 I'd add that If the 1041 is for a trust, you should apply for an FEIN.  This can be done on the IRS website.

[Vincentrogers]

I have an individual who died November 11, 2017. The trust had to obtain a letter of administration appointing a new trustee. The letter of administration was approved on June 20,2018.  A federal ID number was obtained for a Form 1041 this July 2019.  The way I read the tax rules, the initial Form 1041 would have to be either a calendar year end or a starting period from November 11, 2017 to October 31 2018.  Fortunately, the estate did not have any income for that period.

Do I have to select a fiscal year ended October 31, or can I select the actual date the trustee was appointed on June 20 2018 and make the Form 1041 estate select a fiscal year ended May 31, 2019. 

The ID number was obtained late. I obviously cannot file a FYE October 31,2018 since it was never put on extension and it is deemed late.  What is your advice??

[dmertz]

The estate can choose a fiscal year ending on the last day of any month within one year of the date on which the estate first received reportable income.  The estate's fiscal tax year is not established until the estate's first income tax return is filed.  Under the circumstances where there was no reportable income to the estate prior to October 31, 2018, as of now (July 18, 2019) there is no requirement to choose a fiscal tax year that would mean that the estate would be filing a late income tax return.