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Fortunately, the late filing penalty for partnerships can be automatically removed under Rev. Proc. 84-35 and code section 6698(a). Just file the 1065 with the correct short year dates and when the penalty notice comes, you get to be a hero by getting the penalty waved. Also, gives you the opportunity to chastise your client for not keeping you in the loop when anything substantial happens. Be sure to bill them for the penalty removal! Here's the wording I use: Please remove the penalty for late filing of a partnership return under Rev. Proc. 84-35 and code section 6698(a). The partnership is a domestic partnership with 10 or fewer partners, each partner is a natural person or an estate, each partner’s share of each partnership item is the same as such partner’s share of every other item, the partnership has not elected to be subject to the consolidated audit procedures under IRC 6221 through IRC 6233, and all partners reported their share of all pass through items on timely filed individual returns.

Maybe the trust will have to file a second year, but not for this reason. An IRS refund is not income. A trust must file a tax return if it has more than $600 in income, which might or might not be the case. If the trust had no other income and is just distributing assets (the refund), no income tax return is required. BHoffman, did you mean the DECEDENT'S primary residence and a residential rental house he owned were in the trust? If the beneficiary's own assets were in the trust mixed in with the decedent's, you have an ongoing trust and will file returns for many years. And no, if there were no nondeductible contributions to that IRA, there is no basis (all contributions were pre-tax). The whole thing is taxable. Check if the decedent has been filing 8606s to report basis. It seems to me as if this poor guy went to one of those dinner seminars and got suckered into forming a trust he didn't need. From what you've said, he didn't have enough assets to justify protecting them in a trust (he may have had liability reasons). I have witnessed this many times--unsuspecting people fork over a fortune to form a trust they don't need, then have to pay for trust returns every year. I'm dealing with one right now where the decedent had a trust that expired on his death and all the assets were to be distributed to his son. Son called me because the jerk who set up the trust years ago insists the assets must be distributed to a new trust set up for the son before they can be distributed. Cost to set it up is $8500. I told the client to call an attorney, who reviewed the trust document, called the jerk and told him to distribute the assets directly to son. I'd report the jerk if I knew whom to report him to.

Summer isn't ready to wane around here! 90s at the coolest; humidity meets or exceeds the temperatures.

Just got my 7004 accepted for my 6/30 FYE C corp client. They have been in business for a long time but not 100 years. Not sure how long but daughter (not young) runs the dry cleaning business that her father started years ago. Has always been a C corp. So for me at least, I didn't have the problem.

Maybe none of you will have this trouble, and it's a first for me. This is a company that's been in existence for a long time before computerized databases existed at the IRS. They'll celebrate their 100 year anniversary next year, my client purchased it and formed the C corp in 1946, and I've been their accountant for close to 35 years. Ok, that might be longer than the age of some of our members, and now I feel really old.

Let me give it a shot without any references. She must take the RMD regardless of employment status. She can put the money on a Roth IRA if she doesn't need it.

This link may help. As you probably know, there are varying requirements based on what type retirement plan the RMD is for. There are different rules for IRA, Roth and SEP. The 403B & 401K are different based on retirement. http://money.usnews.com/money/blogs/on-retirement/2014/04/07/5-things-you-should-know-about-required-minimum-distributions