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Trust filing necessary or advisable?


KenO

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Client died in 2021 and his investments passed through his trust long-enough to generate a whopping $2 of dividends. It would seem no trust return is necessary with that income, but the attorney did file for an EIN so is it advisable to file an initial and final return to be sure the IRS knows its closed out?

Thanks,

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16 hours ago, KenO said:

Client died in 2021 and his investments passed through his trust long-enough to generate a whopping $2 of dividends. It would seem no trust return is necessary with that income, but the attorney did file for an EIN so is it advisable to file an initial and final return to be sure the IRS knows its closed out?

Thanks,

If they get the EIN there will likely be a letter asking why they didn't file. If they are okay with that, no need to file. If an IRS letter is going to freak them out, file it.

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I usually recommend filing with the "final" box checked, as I did have one trust years ago that had no requirement for its last year - and got a letter two years later wanting to know where the return was. For such returns I charge next to nothing because it's just name, address, EIN, and "final return" box checked. 

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