Do you know which tax returns you will need to file as trustee?

Answer

The trustee is usually required to file an income tax return, even if no tax is due. Typically, the trustee will file a U.S. Income Tax Return for Estates and Trusts (IRS Form 1041). This return is significantly more complicated than an individual’s tax return (IRS Form 1040). Therefore, a certified public accountant or tax lawyer, who is totally versed in fiduciary income tax law, should prepare these returns. These are not do-it-yourself returns or returns to take to mass‑market income tax preparers. Additionally, an accountant or tax lawyer familiar with fiduciary tax returns will need to determine if other returns, beside an income tax return, need to be filed with the Internal Revenue Service and/or with a state revenue department.