I have a client who has a Separate Share Trust from his deceased mother that earned $100 in interest last year. That is the only income reported for this trust for 2020. Does a 1041 need to be filed or can he report the $100 directly on his Schedule B. I don't have unlimited 1041's feature and it seems kind of wasteful to pay over $100 to complete a 1041 in Proseries, especially trying to explain to the client why I have to charge him this kind of fee to cover my costs.
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It had no expenses?
Went to the barber yesterday for my first haircut since December. He was telling me about how his college-graduate stepson had to call AAA to change a flat tire. I told him there are some tax preparers who can't use pen and ink to fill out a simple return in five minutes. (Just kidding.)
Downloaded the forms from IRS and Indiana DOR, printed and will let the client mail. I will advise them that there will be a penalty for missing the filing deadline of April 15, 2021. This is a new client and a new trust. Thanks, got my haircut last week. LOL
In the old days we would use pen and ink, these days you probably found fillable pdf's. Is the trust paying the tax, or did you have to do a K-1 also? And how much penalty do you expect for being a month late -- maybe 51 cents, rounded up to a dollar?