How to resolve Lacerte diagnostic ref. 16041

The diagnostic states:

• e-file: Form 5227 and Form 1041-A returns aren't supported for electronic filing by the IRS. These returns must be filed on paper. (ref. #16041)

How to suppress Form 1041-A

1. Go to Screen 47, Form 1041-A.
2. Enter a 2 in the first field, Form 1041-A: 1=print, 2=suppress.

Trusts required to also file Form 1041-A

Form 1041-A must be filed for a trust that claims a charitable or other deduction under section 642(c) unless an exception applies.

• For example, if a Complex Trust receives a passthrough Schedule K-1 that contains charitable contributions, Lacerte instructs you via a diagnostic to enter the charitable contribution information in Screen 29.1, Charitable Payee. However, entering an amount triggers diagnostic Ref #16041.

Trusts that aren't required to also file Form 1041-A

• Trusts required to distribute currently to the beneficiaries all the income for the year determined under section 643(b) and related regulations.
• Split-interest trusts or nonexempt charitable trusts.

For more information, see page 27 of the Form 1041 Instructions Booklet.