Trust Return - First time to amend

[BulldogTom]

I have prepared a few trust returns, but I have never had to amend one. New client comes in and says he prepared his trust return last year by himself and would rather not do that again. He wants me to do the 2011 return. Very simple, not a lot to it. So I start by recreating his 2010 return. When I get done, his don't look like mine. He made a couple of mistakes, and his K-1 is a mess. All of it is handwritten. The letter from the IRS that they wanted more information before they could process the return was probably the final straw.

So, I know what the return should look like, and I know what he presented to the IRS and CA. Is there anything that I should know about amending the 1041?

Thanks in advance. I think I am going to tackle this tomorrow night.

Tom

Lodi, CA

[Terry D EA]

Tom,

If you have done a few trust returns in the past, then you should know the importance of obtaining the trust instrument. I would get that first so I knew all of the tax reporting requirements that is outlined to be sure the amendment reflects any reporting that may be missing. I amended ten years of a CRUT return without incident. It did take 4 months to complete but all was well in the end. BTW, charge accordingly. These things can get tricky and time consuming

[DANRVAN]

All of it is handwritten. The letter from the IRS that they wanted more information before they could process the return was probably the final straw.

It sounds like the original return was never processed. I had a similar situation which was also a handwritten mess. You might get a POA and check the status of the original return by calling the number on the IRS notice.

In the situation I was involved with, a corrected return was sent directly to the IRS department which had it on hold instead of filing an amended return.

[BulldogTom]

I have the trust document. Very simple trust. Taxpayer assures me that he took care of the 2010 issue. Refund on his personal tax return will more than cover my fees for the amended return. I am almost done with it, and just taking a little break to look on the board, but should have it done in a couple more hours.

Thanks for the responses.

Tom

Lodi, CA