Fiduciary Tax Returns

• Estate Tax Returns (706): Estate tax returns are required when estate values exceed $11,700,000 (for the year 2021). However, they're also frequently filed for much smaller estates. Filing a return provides documentation for the IRS, as well as generating a clean valuation for the executor to distribute assets. Estate returns are due within 9 months of the decendent's date of death (an extension will buy you an additional 6 months).

• Trust and Estate Tax Returns (1041): Trusts report their activity, and income, on a separate tax return (form 1041). We will require a copy of the trust documents in order to prepare the trust tax returns - which ensures accurate filing and also may shed light on some outdated elements (common in older trusts). For estates, the above referenced estate tax return (form 706) is only filed once - to tax the value of the estate. However, if the estate has assets that generate income (before the estate is closed) - it will file that activity on the form 1041 (same as the trust returns). Confused yet? Don't be - just call us!

NonProfit organizations are generally considered "tax-exempt" - but they are required to file informational tax returns (form 990). Since they are not profit oriented and are established for a variety of community needs - they are required to have transparency. NonProfit tax returns are public information and therefore accessible to everyone. If you're looking for assistance with maintaining compliance for your 501(c)3 - TaxCrunch is here to help.