Tax Time is Just Around the Corner: Don’t Forget Estate and Trust Filings

Filing Extensions and Avoiding Penalties

If you do not have all the necessary financial information by the deadline, you can request an extension. However, this extension must be filed before April 15, and any taxes owed must still be paid by the deadline to avoid interest and penalties.  Usually a 1041 will result in forms K-1 issued to the beneficiaries of the estate or trust and this will affect the beneficiary's personal income taxes.  You should let the beneficiaries know that a K-1 will be coming and therefore the beneficiary may want to wait until they receive the K-1 to file their return, or even file an extension themselves to avoid having to file amended returns later.

Plan Ahead and Seek Assistance

To ensure a smooth filing process, it is crucial to gather and submit your estate or trust income tax documentation to your tax preparer well in advance. If you need guidance on filing Form 1041 or understanding your fiduciary tax obligations, our firm is here to assist you. Don't let tax season catch you off guard—contact us today for expert support in handling your trust or estate tax responsibilities.