I am trying to file an extension for a trust return, (I will not be filing the actual 1041); however I cant figure out what type of trust it is. I've read all the pubs-

[nm17]

 It is an irrevocable trust which requires the trustees to pay all net income to the grantors for their lifetime.  The principal of the trust shall at all times be unavailable to the grantors.  The Grantors shall have no right to compel the Trustees to distribute any principal to or for the benefit of either Grantor; and the Trustees shall not, at any time distribute any of the principal of the trust estate to or for the benefit of the Grantors. The Trustees may, in their sole and uncontrolled discretion, distribute so much of the principal, whether the whole or a lesser amount, to or for the benefit of the Grantors' issue, excluding themselves.   I just want to make the correct selection so I can file the extension.  Thank you!

[sjrcpa · Accepted solution]

It's a simple trust unless it distributed principal. If it did, it's a complex trust. It can toggle from year to yer.

[nm17]

1

[Just-Lisa-Now-]

Does it matter for an extension?   Form 7004 with Code 05 is the extension for a trust.

[nm17]

If you don't select a type; Estate, Complex, Simple etc. The program defaults to an Estate and then shows a critical error for not having decedent information.  If you select simple you have to enter different information.  It seems like it does matter, but I honestly don't know I've never done it before so I'm looking for some help.

[nm17]

ok thank you so much! Do you mind if I ask another question, just so I fully understand; I have been reading so much I think I just confused myself making it harder than it is.  Anyhow, I was getting stuck on the accounting income required to be distributed annually (for the simple trust).  So in the trust agreement where it says "The Trustees shall pay all of the net income of the trust to the Grantors for their lifetime" that satisfies the requirement for the accounting income to be distributed annually? I was so confused there I wasn't sure because it didn't specifically say how often, all though it seems like common sense, I wasn't sure if it meant the annual requirement.

[sjrcpa]

"where it says "The Trustees shall pay all of the net income of the trust to the Grantors for their lifetime" that satisfies the requirement for the accounting income to be distributed annually? Yes