Charitable Remainder Unitrust filing requirements

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jphan

Posted 2/21/2006 1:37:39 PM

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Last Login: 2/22/2006 8:49:27 AM
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I have read Rev-Proc 83-32 and other research sources but I am still not sure whether Form 1041-A is required to be filed if a NIM-CRUT uses the lesser of net income or the stated percentage amount to determine the unitrust amount payable to the income beneficiary when net income is less than the fixed percentage amount?

In addition, are Forms 5227 and/or 1041-A required to be filed if there are no activities in the tax year?

Any help is appreciated.

I am not sure whether a NIM-CRUT has to file Form 1041-A and Form 5227 when net income (amount payable to the income beneficiary) for 2005 is less than the fixed percentage amount.

In addition, are Form 1041-A and Form 5227 required to be filed at all if there are no activities for a NIM-CRUT in the tax year?

I appreciate any help you can provide.

Post #84

Mary Kay Foss

Posted 2/21/2006 1:53:51 PM

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Last Login: 3/12/2011 12:58:57 PM
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I file Form 1041-A and 5227 whenever the trust has $100 of gross income. In situations where the expenses exceed the income, I still file although no Form K-1 is attached to the 5227. I also file the 541A and 541B as well.

The penalty for failure to file these forms is $25 or $50 a day, so I'd never take a chance on not filing when the rules are obscure.

Mary Kay Foss

Post #85

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