Before you find out how to prepare tax forms for irrevocable trust, make sure it is not actually a grantor trust. The tax forms for an irrevocable trust are different if it is classified as a grantor trust, so it is important to make sure of the trust type before filing the return. Once you have determined that the trust is irrevocable, you can begin to prepare the necessary forms to send to the Internal Revenue Service, or IRS.
- Find out the amount of income the trust received for the current tax year. If the amount is greater than $600, you will have to prepare tax forms for the irrevocable trust. You must also file a return if any of the trust beneficiaries are not a permanent U.S. resident or citizen.
- The IRS website has the proper tax forms for an irrevocable trust. Download Form 1041, which is called the U.S. Income Tax Return for Estates and Trusts. Complete the form and double check to be sure the amount of income you listed is correct.
- Next, download a Schedule K-1 from the IRS website. This form is also required when you prepare tax forms for an irrevocable trust. The Schedule K-1 is to be completed by any of the beneficiaries who received income from the trust for the tax year. This will help them determine the trust income to include when they prepare their individual tax returns.
- Once you have completed both forms, find the correct IRS Service Center address. The forms will have the appropriate address listed in the instructions. Send the tax forms for an irrevocable trust to the IRS to finalize the tax return process.
What Others Are Reading Right Now.
6 Things You Think Your Girlfriend Cares About But She Doesn...
Guys, it may be time to refocus your efforts.
Pro Wrestling Tales That Will Make You Feel Like Fighting
Don't get too riled up.
9 Rappers With “Young” In Their Names Who Aren’t So Young An...
They get older, their monikers stay the same age.