Category: Tax Returns, Examinations & IRS Procedure Copyright 1998, The Tax Resource Group. All rights reserved. Telephone 800-578-3498. Internet: www.taxresourcegroup.com You have requested assistance in determining the nature of the information that must be disclosed on Form 1041-A for a split-interest trust. This form appears to simply be an information return in which the taxpayer is required to resubmit basic trust-level information already provided on Form 5227. Form 1041-A is required by Internal Revenue Code Section 6034 and its related regulations. Form 1041-A exactly tracks the informational requirements of this section. Section 6034(a)(5) and (a)(6) require the taxpayer to disclose the income, expenses, and balance sheet of a trust described in Section 4797(a)(2). A charitable remainder trust which has an unexpired non-charitable interest is among the trusts described in Section 4797(a)(2). Parts I and IV of Form 1041-A appear to be designed to meet these requirements. Parts II and III do not appear to be applicable. These parts seem to apply to situations in which the trust itself is claiming a charitable deduction. Based on our conversation, that does not appear to be the case with your client. It is not clear why the government requires this information, but it is fairly clear from reading IRC Section 6034 and its related regulation that a simple restatement of trust income and balance sheet is the desired information with respect to this form. |
