[WSBAPT] Error on EIN application has IRS asking for 1041 returns back to creation of RLT

[msilver at wolfenet.com]

I don't think you would want to try that.  However, if there was reportable
before death it should have been reported on decedent's 1040.  You might
reply to the letter and show them the caption and operative provisions in
the trust and indicate the income was due on and properly reported on the
tp's 1040 until death.  In a pinch you could show them that if in fact there
was income it was included in the taxpayer's 1040 but you don't want to
provoke an audit so I would not send  1040's right off the bat.  If income
was in fact on the 1040I would be surprised if the error was not fixable
nunc pro tunc .  

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Jon Fritzler
Sent: Thursday, May 4, 2023 11:04 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>;
estate at forums.osbar.org
Subject: [WSBAPT] Error on EIN application has IRS asking for 1041 returns
back to creation of RLT

 

I represent the successor trustee of a revocable living trust that was
created in 2014. The trustor died in March of this year. Before retaining
me, my client obtained an EIN for the trust. The EIN confirmation letter
from the IRS indicates that fiduciary income tax returns (Form 1041) are due
dating back to 2015.  My assumption is that when my client applied for the
EIN, he gave the starting date of the trust as the date it was created
rather than the date it became irrevocable, i.e., the date of death.

 

Any suggestions on how to fix this?  Can the EIN application be amended?

 

Sincerely,
Jon M. Fritzler
Attorney at Law
717 E. 22nd St.
Vancouver, WA 98663
Tel. 360.818.4431
Eml  <mailto:fritzlerlaw at outlook.com> fritzlerlaw at outlook.com

 

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