Understand the Tax Treatment of Fiduciary Entities to Ensure Compliance Under Form 1041
Tax compliance issues for fiduciary entities are sometimes confusing to practitioners because many lack experience in this area. When a taxpayer dies, certain income that wasn’t included on his or her final return must be reported to the IRS. The IRS considers the estate as a taxable entity separate from the decedent and expects the income earned by the estate’s assets to be reported every year until the final distribution of its assets to heirs and beneficiaries. Form 1041, the U.S. Income Tax Return for Estates and Trusts, is filed by a fiduciary to report the estate or trust’s income to the IRS. Tax practitioners who are unfamiliar with fiduciary entities’ tax compliance issues must first understand the basic issues of estates and trusts.
This session, the first of a two-part series, with tax attorney Arthur Werner will explain the basics of tax treatment of fiduciary entities and equip you with a practical understanding of estates and trusts as well. This session will provide an overview and guide to understanding Subchapter J of the Internal Revenue Code, which deals with taxation of estates, trusts, beneficiaries and decedents. You’ll learn all the essential steps in preparing Form 1041.
After attending this session you will:
Understand specific issues regarding a decedent’s estate
Understand specific issues regarding a trust
Understand the classification of trust entities
Understand various fiduciary issues
Understand the basics of Subchapter J of the Internal Revenue Code
Know how to comply with “Obamacare” tax compliance issues
Get case studies regarding reading an estate document
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...