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Decedent died 11/22/20. Fiscal year runs to 10/31/21. The investments were sold 8/13/21. The 1041 is due 2/15/22.
I don't have much experience with 1041s and can't get my head around the timing of all this. I can't prepare the 1041 until I have 1099s, which won't come out until after my 2/15/22 deadline, right? And this will be a first and final 1041 producing K-1s to the beneficiaries. With the estate's fiscal year ending 10/31/21, the tax passed out on the K-1 should be included on the beneficiaries' 1040 due April 2022.
Is it just a matter of requesting an extension, waiting for the 1099s, and then rushing to file as soon as I get them so as to get K-1s to the beneficiaries in time to do their own taxes? There are 12 beneficiaries and there will be taxable income passed out to all of them on K-1s. Just want to make sure I'm approaching this in the right way and not causing headaches for people unnecessarily. Thanks!
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Who decided on a fiscal year and when was the decision made? Smart thing to have done earlier this year is file with a fiscal year ending January 31. Too late to make that election now. But you can still file a late calendar-year return, probably showing little or no income through 12/31; maybe losing some of the deductions if administrative expenses were paid right away. You might not even have a filing requirement, if there was no income from 11/22 to 12/31, although I sense there were some mutual funds with CGD's. (Maybe not enough to get out of the 0% tax bracket.)
How is it going to be a final 1041 if the estate hasn't been closed because the tax returns haven't been filed?
You don't use 1099's for a fiscal-year return anyway, you use monthly statements and trust accounting ledger. So you could prepare and file the return by mid-November, beating the tax-season rush. Collect your fees by October so they'll be deductible. Maybe it can be a final return if the rest of the estate closing requirements are done.
