Estate Return

[Patrick Michael]

I do not normally prepare estate returns but am trying to help out a friend whose significant other passed suddenly in October of 2015 leaving him in a little bit of a financial mess. 

The attorney handling probate opened an estate and obtained an EIN and my friend has been named executor.  A letter from the IRS indicates that a 1041 must be filed by 04/15/16 but from what I read the first year can be any period one year or less.  So my first question, does the 1041 need to be filed by 04/15/16?

To date there has been no IRD and he does not expect any to be received.  Second question, should a zero 1041 return be filed even though the filing threshold of $600 gross income has not been met.

Lastly, the only assets in her estate is a small bank account, motor home and residence, total value about $250,000.  Does a form 706 need to be filed even though the gross estate is less than the exclusion amount?

Thanks for the help

[michaelmars]

who ever got the ein number told the irs it was a calendar year trust thus the 4/15/16 deadline.  You can elect any year end less than 1 year as you stated.  just do this on the first return you file.  Based on DOD you will probably want a 9/30/16 year end. 

In my office, its always the fiscal year returns that tend to get missed till the last minute so personally, I would do a -0- return as of 12/31/15

 

[Terry D EA]

Yep, I agree do a zero return. Been there and done this.

[Lion EA]

You may want a 706 to make the portability election.  At least inform your client and get in writing if he chooses not to file a 706.

[Patrick Michael]

38 minutes ago, Lion EA said:

You may want a 706 to make the portability election.  At least inform your client and get in writing if he chooses not to file a 706.

They were never married, just lived together.  Does the portability election still come into play?

[Lion EA]

Don't think so.  So, you're off the hook for the 706.

[Patrick Michael]

Thanks to everyone.