Form 1041 Filing

[TP82]

I have a client who has a Separate Share Trust from his deceased mother that earned $100 in interest last year.  That is the only income reported for this trust for 2020.  Does a 1041 need to be filed or can he report the $100 directly on his Schedule B.  I don't have unlimited 1041's feature and it seems kind of wasteful to pay over $100 to complete a 1041 in Proseries, especially trying to explain to the client why I have to charge him this kind of fee to cover my costs.

[sjrcpa · Accepted solution]

Read the 1041 instructions for Who Must File. 

[TP82]

Thanks, it says "any" taxable income so that would mean one would need to be filed.  I guess I will try to figure a way around paying the $100 charge to Proseries to file it.  Thanks.

[BobKamman]

It had no expenses?  

Went to the barber yesterday for my first haircut since December.  He was telling me about how his college-graduate stepson had to call AAA to change a flat tire.  I told him there are some tax preparers who can't use pen and ink to fill out a simple return in five minutes.  (Just kidding.)

[TP82]

Downloaded the forms from IRS and Indiana DOR, printed and will let the client mail.  I will advise them that there will be a penalty for missing the filing deadline of April 15, 2021.  This is a new client and a new trust.  Thanks, got my haircut last week. LOL

[BobKamman]

In the old days we would use pen and ink, these days you probably found fillable pdf's.  Is the trust paying the tax, or did you have to do a K-1 also? And how much penalty do you expect for being a month late -- maybe 51 cents, rounded up to a dollar?  

[TP82]

I remember those old days!