Tax professionals must know how to fill in a Form 1041 accurately, to satisfy stepped up inspection by the Internal Revenue Service. This includes knowing the details of fiduciary income taxation and accounting perceptions.
A panel of key thought leaders and experts will discuss:
- Ways to address current issues about Form 1041
- Reporting rules for grantor and non-grantor trusts
- A detailed blueprint of ways to assure conformity.
Form 1041: How to Prepare an Accurate Form for Tax Professionals LIVE Webcast will also provide an analysis of fiduciary accounting income and its effect on determining taxable income. Enrolled Agents will find this information to be highly useful and important.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Conference
Recommended CLE/CPE Hours: 2.0
(Please note, your State Bar or Accounting Board will make the final determination with respect
to continuing education credit.)
Advance Preparation: Print and review course materials
Course Code: 093871
Rosemarie C. Steeb
Executive Director, Personal Financial Services
Sharon L. Klein
Senior Vice President, Trust Counsel and Director of Estate Advisement
Robert E. Friedman
Counsel
Rosemarie C. Steeb, Executive Director, Personal Financial Services, Ernst & Young LLP
- Categorization of trusts and impact on Form 1041 reporting - will focus on grantor trusts and electing small business trusts (ESBTs) including alternative filing
requirements for grantor trusts
- Special elections and their role in Form 1041 compliance -- will discuss Section 663(b) - "65 day election"; Section 643(g) election for application of trust estimated
tax payments to beneficiary and Form 1041T and Section 645 election for qualified revocable trust owned by decedent to be included with fiduciary income tax
return for estate rather than a separate return
- Be sure to consider state tax issues -- can have trust that is resident in multiple states or an "orphan" trust that is resident in no state.
Robert E. Friedman, Counsel, Katten Muchin Rosenman LLP
- Selecting and estate's fiscal year (which is done on the first year's return) and its impact on the beneficiaries' ability to delay the payment of income taxes.
- The deduction reported on line 19 of the Form 1041 for estate tax imposed on income in respect of a decedent.
- The holding period and tax basis for property inherited from a decedent.
- The inclusion of capital gain in distributable net income (DNI) in the final year of an estate or trust.
- deductions that pass out to beneficiaries in the final year of an estate or trust.
- When is an estate's or trust's existence as a separate income tax entity deemed terminated by IRS even if the fiduciary hasn't formally terminated the entity.
Sharon L. Klein, Senior Vice President, Trust Counsel and Director of Estate Advisement, Fiduciary Trust Company International
Knight Unbundled – Analysis and Practical Guidance
Resolving a decades long split among the U.S. circuits, on January 17, 2008, the Supreme Court in the Knight case ruled that investment advisory fees paid by an individual trustee are generally not fully deductible; rather, they are subject to a 2% floor. The deductibility of investment advisory fees is an issue of particular interest to fiduciaries and their advisors.
Many fiduciaries do not charge separate fees for the different services performed (investment management, custody, preparation of fiduciary income tax returns, communication with beneficiaries, etc). Rather, one bundled fee is charged which includes all the fiduciary services. Before the Supreme Court ruled, the IRS had issued proposed regulations which required the unbundling of unitary fiduciary fees.
After the Supreme Court ruled, the IRS released Notices, providing interim guidance pending the release of final regulations.
During this presentation we will review:
- What the Knight decision means in practical terms
- What the IRS Notices mean in practical terms
- How to deal with the issue of unbundling fiduciary fees
- Under what circumstances costs incurred by trusts are fully deductible
- Practical guidance for filing fiduciary income tax returns
- Comments submitted to the IRS regarding the issuance of final regulations
- What steps you can take now while final regulations are pending.
Healthcare Finance:
- CPAs
- Accountants
- Enrolled Agents
- Tax Lawyers
- Estates and Trusts practicing Attorneys
- Tax Consultants
This is a must attend event for tax professionals to better understand and know the accurate way of preparing the Form 1041.
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A