While preparing an Arizona Form 141AZ Fiduciary return, a question was asked and at first I answered it one way but then began to wonder about its real implications. I looked on the AZ Dept of Revenue website and they were no help, even their instructions said to answer this question without providing any guidance and so I am asking anyone who is familiar with this issue to provide their help to me. It is Question E3 on page 4 and it asks: Was an income tax return filed for the four preceding tax years? At first I thought this applied to the Trust but then I began to wonder that maybe it applied to the decedent? My doubt came about because the next question E4 asks, was a fiduciary return filed last year? So then I began to think that maybe question E3 applied to the decedent and not to the Trust??? Please help if you can and thank you, Tom Bruzda, E.A.
That question is to be answered only be estates, and the full question is "Have Arizona income tax returns been filed for the four (4) years preceding date of death?" Obviously, estates don't file returns before death. The question is asking about the decedent, not the estate.
