I have a trust that receives 100% of its income from a S Corporation. The trust passes through 100% of its income to the beneficiaries. In 2012, the K-1 from the S Corp reflected charitable contributions. Am I required to file Form 1041-A?

ANSWER

The BIDaWIZ Team's Answer:

The short answer is that the trust will need to file form 1041-A unless it is required to distribute 100% of its income to the beneficiaries. Please see revenue ruling Rev. Rul. 2004-5, 2004-3 I.R.B. 295. The AICPA has lobbied lawmakers to waive this requirement for all trusts, but with no such luck.