Trust return need to file or not

[ljwalters]

Trust income was 2 1099int totaling $39.  Trust is now closed. no final ever filed

Does it need to be filed at least to submit final return?

 

Client doesn't think it needs to be filed.

[Abby Normal]

From the instructions for 1041:

 

Trust

 

The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic trust taxable under section 641 that has:

1. Any taxable income for the tax year,

2. Gross income of $600 or more (regardless of taxable income), or

3. A beneficiary who is a nonresident alien.

I would file a final return because the penalties for not filing a return are stiff.

 

And excess deductions will pass out to beneficiaries.

Edited February 18, 2015 by jmdaviscpa

[ljwalters]

Thanks

[Abby Normal]

You're welcome! I wanted to look it up for myself, too. I've not filed 1041s for estates with less than 600 before. Now I'm wondering if I was wrong!

[kcjenkins]

Tell him it's not only 'required', it's to his benefit to close it out properly, so that nothing comes up to bite him later.  He does not want to be getting something from the IRS about it several years down the road.

[mcb39]

The lady who set up "my" PIA trust passed away on Jan 8, 2015.  When is the final return due?  2015 or 2016?

[Terry D EA]

2015 I believe.

[Randall]

What about an estate with no income but there's an EIN.  Do you file a return just to close out the EIN or just let it ride?

[Abby Normal]

I've done both. Depends on whether there are excess deductions and whether bene's can use them.