Understand How to Prepare the Form 1041 for Filing an Estate’s Income Tax Return
When a decedent leaves a fiduciary in charge of his or her estate, the fiduciary must fill out a special form with the Internal Revenue Service (IRS) to report what happens with the estate or trust. Income, deductions, gains and losses, as well as income that is distributed to beneficiaries or accumulated or held for future distribution to them, and any income tax liability of the estate or trust, must all be reported, according to the IRS. And don’t forget any household employees and their wages – the fiduciary must ensure employment taxes are reported to the IRS.
The resulting tax compliance issues can be dizzying, especially to practitioners who have never worked with fiduciary reporting and Form 1041 before. Preparing a U.S. income tax return for an estate or trust involves many issues that are not intuitive and that require some practice to get right. Don’t let your client be a test case! Join this session with tax attorney Arthur Joseph Werner and get a clear idea of how to handle the Form 1041 and all its reporting complexities. Arthur will equip you with a practical understanding of the issues involved in preparing Form 1041, including a line-by-line presentation of the form.
After attending this session you will:
Learn how to prepare a Form 1041
Get an understanding of distributable net income (DNI)
Get an understanding of income in respect of a decedent (IRD)
Get line-by-line instruction for completing Form 1041
Understand the “Information” section
Know the “Nine Questions” and how to answer them
Understand Income lines and deduction lines
Know how to fill out Schedule A – Charitable deductions
Know how to fill out Schedule B – Income distribution deduction
Be adept with other schedules
Correctly execute tax computation
Know how to fill out Schedule K and Schedule K-1
NASBA & IRS Category of Study: Taxes
Who Should Attend
Certified Public Accountants (CPAs)
Enrolled Agents (EAs)
Other Tax Preparers
Attorneys who need to understand Form 1041 preparation
Arthur Joseph Werner, JD, MS (Taxation), received his B.S. in Accounting and his M.S. in Taxation from Widener University. He holds a J.D. in Law from the Delaware Law School. His lecture topic specialties extensively include the areas of Estate Planning, Financial Planning, and Estate and Gift Taxa...