TRUST irrevocable

[TAXMAN]

Irrevocable trust created 10-01-2003 for nephew until he turned 21 or graduated college. Nephew is 17 now. Funded with a dollar. TP that created trust died 2014. distribution to nephew went to trust per will in 2015. Trustee deposited $ in trust in 2015 but bank needed FEIN to set up bank account. Bank received FEIN 3-17-2015. Trustee received letter from IRS stating that returns were due dating back to 2004. They also stated that if no income for these years and had no employees please file returns showing you have no liability. Question is would you file all these returns showing zero's? Or what would you do?

[Max W]

That's what I would do - all zeros.

I have had to do a number of corp returns that had no income and no expenses so that the corporation could be revived (CA).

 

[Richcpaman]

Send a letter to the IRS. 

The Banker messed up.  They get the FEIN, and state that the trust started in 2004.  No, the document was signed in 2004, and it was a grantor trust till then.  When they passed away in 2014, then it became IRR, and the trust needed an EIN.  It all started at the death of the grantor in 2014.

No need to file all those returns.  You can, but I just had the same situation.  I prepared a letter to the IRS and they replied that the first return was due in 2015.

Rich