Reminders

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Reminders

  • Review a copy of the will or trust instrument, including any amendments or codicils, before preparing an estate's or trust's return.

  • We encourage you to use Form 1041-V, Payment Voucher, to accompany your payment of a balance of tax due on Form 1041, particularly if your payment is made by check or money order.

  • If an amended return is filed for an NOL carryback, write “ NOL Carryback ” at the top of the page. See Amended Return, later, for complete information.

Section 67(e) regulations. At the time of publication, the proposed regulations under section 67(e) were not yet final. These regulations clarify which costs, such as investment advisory and bundled fiduciary fees, incurred by estates and nongrantor trusts are not exempt from the 2% floor for miscellaneous itemized deductions. Notice 2011-37 (available at www.irs.gov/irb/2011-20_IRB/ar08.html) extends the existing interim guidance providing that taxpayers will not be required to determine the portion of a bundled fiduciary fee that is subject to the 2% floor under section 67 for taxable years that begin before the publication of final regulations. If the regulations are finalized later in the filing season, an update will be posted at www.irs.gov/form1041.

Section A clarification. On page 1 of Form 1041, we changed the text of Section A to clarify that taxpayers should select more than one box, when appropriate, to reflect the type of entity.

Section E clarification. On page 1 of Form 1041, we amended Section E to clarify that the checkbox for "not a private foundation" is available only for charitable trusts described in section 4947(a)(1), and not to split-interest trusts described in section 4947(a)(2).

Automatic 6-month extension of time to file bankruptcy estate return. Beginning June 24, 2011, an individual filing a Chapter 7 or Chapter 11 bankruptcy estate return is eligible for an automatic 6-month extension instead of a 5-month extension.