1041 Trust

Forum|Forum|3 years ago
January 3, 2023
1 reply
12 views

A client started a 1041 Trust (Revocable). The client is the grantor / trustee. From what I've read in the instructions for form 1041, there was no need to file a form 1041 (trust has never had income). Any income would be claimed on the clients tax return.

The client applied for an EIN in 2022. The IRS EIN form says a 1041 needs to be filed. Does just obtaining an EIN change reporting requirements? Seems pretty clear in the instructions. The optional methods seem to allow for not having to file form 1041.

Any input would be appreciated. Thanks!

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IRonMaN

Level 15

Irrevocable trusts file 1041s, revocable trusts don't.

Slava Ukraini!

J

jjtrcka221Author

Level 3

That's what I thought, but the form from the IRS showing the EIN says to file form 1041 by a certain date.

T

TexCPA

Level 3

They really shouldn't have requested an EIN for a revokable trust. You do not have to file, but you may get a nasty-gram from the IRS asking why you didn't. Or not, they're so deep in unfiled returns, you may get a letter in five years LOL If you do get a letter, you can just respond to it explaining that it's a revokable trust and all income has been reported on form 1040, as that is the correct treatment.

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