Past years trust returns

A new client has irrev. grantor trust. They had gotten notice that there were no trust returns filed for several years. The investments are under the trust number but had been reporting on their 1040. Can I just send the front page of the 1041 with the rev proc election to report on personal 1040. Do all these investments have to be entered and showing on a grantor letter? attached.




2 people found this helpful

Grantor trust is ignored for income tax purposes. All of the income, deductions, etc., are treated as belonging directly to the grantor. Therefore:

  1. Fill in only the entity information of Form 1041.
  2. Don't show any amounts on Form 1041.
  3. Don’t file Schedule K-1 (Form 1041).
  4. Instead, show dollar amounts on an attachment to Form 1041.
  5. However, don't use Schedule K-1 as the attachment.

Was this answer helpful? Yes No
Default user avatars original
Munti73 , Taxlady

No answers have been posted

More Actions

People come to Accountants Community for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: