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Car - Guy:
I can't quote any reference to support any of this, just some of it seems to be common practice.
First of all, Have all the estate expenses (Including your fees for the final return you are working on) been paid, and the Estate bank account been completely emptied and closed? If not, then I you might not have a closed estate if any $ (or other assets)are still held in estate accounts or estate name. I always quote a fee and get paid by the estate just before final distributions are made. (In my experience any income on a final return goes out to the beneficiaries on K-1 forms, so there is normally no estate income tax owed with the final return.)
Also there are cases with a date of death of say February 2020. Estate return is filed for year ending Jan 31, 2021, and estate is close in March 2021. So we would be looking at a 2021 return (year starts 2-1-21) ending 3-31-21. Theoretically due July 15, 2021. 2021 Forms would not even be available at that point so what do you do.
I am not sure, but I THINK I may have in these cases filed a return from say 2-1-21 to 12-31-21 even though there was not activity in the estate after 3-31-21. I just couldn't figure out what else to do, and if there is no tax effect, and you stay within the same year so the beneficiaries are not delaying income reporting, no harm no foul. Again I cannot site a reg. allowing that, but if there is no tax effect, no harm.
Yes. You have a short final year 9-1-21 to 10-23-21 (or whenever you decide to end it.) keep in mind that if you use say October 31-2021 as your closing date your 1041 is due the 15'th day of the 4th month. That would make your due date this Tuesday. 2-15-22
Hi Jeff,
So, do I have an option to use a later date, such as 12/31/21, because my state software isn't eligible to e-file with a date before 12/31/21? Thanks for your help!
Car Guy
Car - Guy:
I can't quote any reference to support any of this, just some of it seems to be common practice.
First of all, Have all the estate expenses (Including your fees for the final return you are working on) been paid, and the Estate bank account been completely emptied and closed? If not, then I you might not have a closed estate if any $ (or other assets)are still held in estate accounts or estate name. I always quote a fee and get paid by the estate just before final distributions are made. (In my experience any income on a final return goes out to the beneficiaries on K-1 forms, so there is normally no estate income tax owed with the final return.)
Also there are cases with a date of death of say February 2020. Estate return is filed for year ending Jan 31, 2021, and estate is close in March 2021. So we would be looking at a 2021 return (year starts 2-1-21) ending 3-31-21. Theoretically due July 15, 2021. 2021 Forms would not even be available at that point so what do you do.
I am not sure, but I THINK I may have in these cases filed a return from say 2-1-21 to 12-31-21 even though there was not activity in the estate after 3-31-21. I just couldn't figure out what else to do, and if there is no tax effect, and you stay within the same year so the beneficiaries are not delaying income reporting, no harm no foul. Again I cannot site a reg. allowing that, but if there is no tax effect, no harm.
Was a fiscal-year return actually filed for 8/31/21?
Yes, we did file an initial fiscal year return ending 8/31/2021.
Yes, all estate expenses have been paid including my fee. The final distributions were paid out and the account closed on 10/23/2021.
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