Hi,
If you’re a trustee or executor who filed an extension on a trust or estate return this year, here’s a date worth circling: September 30. That’s when the extended Form 1041 comes due – and unlike most other extensions, there’s no further extension past that date.
It’s an easy one to lose track of. Trust and estate returns don’t feel like “your” tax return, and the extension window is 5.5 months instead of the usual 6 – just short enough that people plan around the wrong date almost every year.
Here’s what’s actually at stake:
- Missing September 30 can trigger failure-to-file penalties on the trust or estate itself, separate from anything owed
- Beneficiaries can’t cleanly file their own returns until they have their K-1s, so a late 1041 tends to become everyone’s problem, not just yours
- If the return hasn’t been started yet, there’s still time – but not much
While we’re in there, it’s also worth going over the dozen or so tax reduction strategies available for estates & trusts. For example, a 663(b) election can meaningfully lower the trust’s tax bill by shifting income between years. This is one of many!
How we can help:
- Full preparation of Form 1041 and all beneficiary K-1s
- Coordination with the trustee/executor so distribution numbers match what beneficiaries are expecting
- A look at whether a 663(b) election or any other tax strategy applies to your situation
- Ongoing fiduciary accounting and bookkeeping, if the trust or estate needs it
Reply to this email by Wednesday this week, and we’ll set up a free 15-minute call with our senior tax advisor to see exactly where things stand and what it’ll take to get this filed before the 30th.
If you want our complimentary estate and trust tax strategy checklist, please also request by replying here.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com