Need help ASAP with form 1041-A

[BHoffman]

Can someone help me out with a (late) 1041-A form? The client is anxious since the penalty clock is ticking at $10 per day

I have finished Part I. I'm a little confused about the "category" and "purpose".

Do I have to fill out anything in Part II?

No principal was distributed, so nothing in Part III?

I think the balance sheet is probably OK.

Thanks for your help.

[TAXNJ]

Did

Can someone help me out with a (late) 1041-A form? The client is anxious since the penalty clock is ticking at $10 per day

I have finished Part I. I'm a little confused about the "category" and "purpose".

Do I have to fill out anything in Part II?

No principal was distributed, so nothing in Part III?

I think the balance sheet is probably OK.

Thanks for your help.

Did you read the instructions for Part II? If anything applies, place answers on appropriate lines ASAP! ��

[BHoffman]

Why yes, I sure did read the destructions. I do not understand what I'm reading under "Part II. Distributions of Income Set Aside for Charitable Purposes" and am asking for some experienced help.

Thanks

[Roland Slugg]

Are you sure the TIQ has to file form 1041-A? Not many do. In fact your uncertainty about Part II suggests to me that your Trust does NOT file that form. Did the Trust set aside income during 2014 that was earned on assets transferred to the Trust prior to October 9, 1969? That was 45 years ago, and most such Trusts would have a long-standing relationship with a CPA or other highly experienced Trustee.

If you're sure your Trust must file form 1041-A, you can always request a waiver of the accumulated penalty, but I believe in order to get it you will have to convince the IRS the late filing was due to reasonable cause.

[BHoffman]

Are you sure the TIQ has to file form 1041-A? Not many do. In fact your uncertainty about Part II suggests to me that your Trust does NOT file that form. Did the Trust set aside income during 2014 that was earned on assets transferred to the Trust prior to October 9, 1969? That was 45 years ago, and most such Trusts would have a long-standing relationship with a CPA or other highly experienced Trustee.

If you're sure your Trust must file form 1041-A, you can always request a waiver of the accumulated penalty, but I believe in order to get it you will have to convince the IRS the late filing was due to reasonable cause.

Hi Roland - I am not sure the TIQ has to file form 1041-A. If a better explanation indicates that no form 1041-A is required, I will be joyful beyond what is typical for the season

The trust did not set aside income during 2014 that was earned on assets transferred to the Trust prior to October 9, 1969.

This complex trust did take a deduction for charitable contributions in 2014 that came from income earned in 2014. The trusts income was around $60k and the charitable deduction was around $20k.

Thanks so much for your answer. I am sweating bullets over this

[BHoffman]

http://forum.thetaxbook.com/showthread.php?25892-Estate-with-charitable-contribution&highlight=1041

The above thread was when I started to get panicky about the late form 1041-A. Can you help?