1041 Estimated Tax Payments

[S T]

I have a taxpayer that received a notice from IRS which is not crediting some estimated tax payments to her form 1040 made on her behalf from a Trust form 1041.

In reviewing the Trust Tax return form 1041, I do not see a 1041T for beneficiary allocation of estimated tax payments, so I suspect that the Trustee did not complete it and file it.

The instructions state that this form is to be filed no later than March 6, 2006 for the 2005 tax year. If this form was not completed, does that mean that the estimated tax payments made on 1041 ES can not be allocated to the beneficiary??? and her 1040 account is underpaid and subject to penalties.

Anyone had any experience with this??

Thanks,
Sandy

[Bees Knees]

All I can say is what you already read in the instructions. You need to do the 1041T in order to by-pass the trust and have the estimates directly applied to the beneficiary's 1040. Otherwise, you are stuck with having the 1041 over paid and the 1040 underpaid.