I'm working with a new trust client that had a 2014 1040 filed for the client that should have been filed as a 1041. However, the IRS realized the error and filed an SFR 1041 for the client and created a NEW EIN to boot! Since the trust already had an EIN and for which 1099-R's were issued to the original EIN with federal w/h, which EIN should the "correct" 1041 be filed under? Should an amended return be filed under the EIN the IRS created and file a NEW 1041 using the correct/original EIN? That would sound like the most logical thing to do but would be interested in hearing other ideas/comments/suggestions.
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I can't believe they did that instead of just sending it back to the trustee. Since they did an SFR 1041, what was the result? Did they say it owed tax? Did they (somehow) give credit for the withholding? I would be amazed if they did since it is under a different EIN on the forms. And how would they have known if there were any distributions? I guess they just did it without any.
Since the 1099R's were issued under the original EIN with federal withholding, that is what you should use to file the 1041 return. Which should match with the 1099R's and credit given to the trust. Try doing the return correctly as it should have been, and e-file it. If it goes through, all is okay, except you need to notify the IRS that their SFR and the EIN they used is incorrect and to cancel it. You may be able to do that through simple correspondence explaining what happened.Last edited by Burke; 03-17-2016, 06:11 PM.
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