My client was beneficary of an estate for her friend who died in 2003. The estate was settled in Feb 2005 (it took the lawyer two years to sell the deceased lady's condo).
The CPA who prepared the 1041 and K-1 (signed on 4/26/2005) used the 2004 K-1 form and at the top it says "fiscal year begining 7/1/2004 and ending 6/30/2004". That can't be right. It seems to me that the tax year for the 1041 was 7/1/2004 to 6/30/2005. I think the CPA made a (minor) mistake.
Anyway, here's my question: Do I put the K-1 information on my clients 2005 tax return, or do I have to ammend her 2004 tax return. (because the K-1 is on a 2004 form)? Is this similar to getting a W-2 on a 2004 form and wanting it to be on 2005's return? You have to correct the W-2 or ammend the 2004 return.
I lean toward believing the CPA made a mistake on the dates and I report the K-1 data on my clients 2005 return. Sound right?
I don't do many 1041's, so I appreciate your experience and opinions.
Carol
The CPA who prepared the 1041 and K-1 (signed on 4/26/2005) used the 2004 K-1 form and at the top it says "fiscal year begining 7/1/2004 and ending 6/30/2004". That can't be right. It seems to me that the tax year for the 1041 was 7/1/2004 to 6/30/2005. I think the CPA made a (minor) mistake.
Anyway, here's my question: Do I put the K-1 information on my clients 2005 tax return, or do I have to ammend her 2004 tax return. (because the K-1 is on a 2004 form)? Is this similar to getting a W-2 on a 2004 form and wanting it to be on 2005's return? You have to correct the W-2 or ammend the 2004 return.
I lean toward believing the CPA made a mistake on the dates and I report the K-1 data on my clients 2005 return. Sound right?
I don't do many 1041's, so I appreciate your experience and opinions.
Carol
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