Trust due date confusion

[ILLMAS]

Hopefully someone with experience on trust can help me with this question I have, according to the FEIN letter (IRS SS-4 acceptance letter) the form 1041 is due by 4-15-17, however the trust return fiscal year starts on 04/04/16 to 03/31/17 which the due date should be 7-15-17, does this sound correct?  Also, I if I want to submit an extension and the due date on the letter is 4-15-17, would the extension be rejected?

Thanks

 

[Gail in Virginia]

The year end for a trust is usually established when the first return is filed.  If this is the first year of the trust, you should be okay both on the filing of the return and the submission of the extension. 

[ILLMAS]

Thanks, I submitted the extension and it was approved.

 

[SaraEA]

Most trusts have to use a calendar year.  This from the Form 1041 instructions:

"Generally, a trust must adopt a calendar year. The following trusts are exempt from this requirement:

• A trust that is exempt from tax under section 501(a);

• A charitable trust described in section 4947(a)(1); and

• A trust that is treated as wholly owned by a grantor under the rules of sections 671 through 679."

Note that the extension due date is only 5 1/2 months.  Also, the letters assigning EINs to estates and trusts are pre-programmed to use a calendar year.  Almost all the estates I do elect a fiscal year, so you can safely ignore the letter.  Gail is correct that the reporting period is established when the first 1041 is filed, letter instructions notwithstanding.  However, this only applies to estates and exempt trusts.