Tax Return Project

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rm 1041 2020U.S. Income Tax Return for Estates and Trusts Department of the Treasury—Internal Revenue Service

▶ Go to www.irs.gov/Form1041 for instructions and the latest information. OMB No. 1545-0092

For calendar year 2020 or fiscal year beginning , 2020, and ending , 20 Name of estate or trust (If a grantor type trust, see the instructions.)

Name and title of fiduciary

Number, street, and room or suite no. (If a P.O. box, see the instructions.)

City or town, state or province, country, and ZIP or foreign postal code

A Check all that apply:

Decedent’s estate

Simple trust

Complex trust

Qualified disability trust

ESBT (S portion only)

Grantor type trust

Bankruptcy estate—Ch. 7

Bankruptcy estate—Ch. 11

Pooled income fund

B Number of Schedules K-1 attached (see instructions) ▶

C Employer identification number

D Date entity created

E Nonexempt charitable and split-interest trusts, check applicable box(es). See instructions.

Described in sec. 4947(a)(1). Check here if not a private foundation . . ▶

Described in sec. 4947(a)(2)

F Check applicable boxes:

Initial return Final return Amended return Net operating loss carryback

Change in trust’s name Change in fiduciary Change in fiduciary’s name Change in fiduciary’s address

G Check here if the estate or filing trust made a section 645 election . . . . . . . . . ▶ Trust TIN ▶

In c

o m

e

1 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2a Total ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . 2a

b Qualified dividends allocable to: (1) Beneficiaries (2) Estate or trust 3 Business income or (loss). Attach Schedule C (Form 1040) . . . . . . . . . . . . . 3 4 Capital gain or (loss). Attach Schedule D (Form 1041) . . . . . . . . . . . . . . . 4 5 Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040) . . 5 6 Farm income or (loss). Attach Schedule F (Form 1040) . . . . . . . . . . . . . . . 6 7 Ordinary gain or (loss). Attach Form 4797 . . . . . . . . . . . . . . . . . . . 7 8 Other income. List type and amount 8 9 Total income. Combine lines 1, 2a, and 3 through 8 . . . . . . . . . . . . . . ▶ 9

D e

d u

c ti

o n

s

10 Interest. Check if Form 4952 is attached ▶ . . . . . . . . . . . . . . . . . 10 11 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Fiduciary fees. If only a portion is deductible under section 67(e), see instructions . . . . . . 12 13 Charitable deduction (from Schedule A, line 7) . . . . . . . . . . . . . . . . . 13 14 Attorney, accountant, and return preparer fees. If only a portion is deductible under section 67(e),

see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 a Other deductions (attach schedule). See instructions for deductions allowable under section 67(e) 15a

b Net operating loss deduction. See instructions . . . . . . . . . . . . . . . . . 15b 16 Add lines 10 through 15b . . . . . . . . . . . . . . . . . . . . . . . ▶ 16 17 Adjusted total income or (loss). Subtract line 16 from line 9 . . . . . 17 18 Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041) . . 18 19 Estate tax deduction including certain generation-skipping taxes (attach computation) . . . . 19 20 Qualified business income deduction. Attach Form 8995 or 8995-A . . . . . . . . . . 20 21 Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 22 Add lines 18 through 21 . . . . . . . . . . . . . . . . . . . . . . . . ▶ 22

T a

x a

n d

P a

ym e

n ts

23 Taxable income. Subtract line 22 from line 17. If a loss, see instructions . . . . . . . . . 23 24 Total tax (from Schedule G, Part I, line 9) . . . . . . . . . . . . . . . . . . . 24 25 2020 net 965 tax liability paid from Form 965-A, Part II, column (k), line 4 . . . . . . . . 25 26 Total payments (from Schedule G, Part II, line 19) . . . . . . . . . . . . . . . . 26 27 Estimated tax penalty. See instructions . . . . . . . . . . . . . . . . . . . . 27 28 Tax due. If line 26 is smaller than the total of lines 24, 25, and 27, enter amount owed . . . . 28 29 Overpayment. If line 26 is larger than the total of lines 24, 25, and 27, enter amount overpaid . . 29 30 Amount of line 29 to be: a Credited to 2021 ▶ ; b Refunded . . . . . ▶ 30

Sign Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

▲

Signature of fiduciary or officer representing fiduciary Date

▶

EIN of fiduciary if a financial institution

May the IRS discuss this return with the preparer shown below? See instructions. Yes No

Paid Preparer Use Only

Print/Type preparer’s name Preparer’s signature Date Check if self-employed

PTIN

Firm’s name ▶

Firm’s address ▶

Firm’s EIN ▶

Phone no.

For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11370H Form 1041 (2020)

Form 1041 (2020) Page 2 Schedule A Charitable Deduction. Don’t complete for a simple trust or a pooled income fund. 1 Amounts paid or permanently set aside for charitable purposes from gross income. See instructions 1 2 Tax-exempt income allocable to charitable contributions. See instructions . . . . . . . . . 2 3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable

purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable

purposes. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Charitable deduction. Subtract line 6 from line 5. Enter here and on page 1, line 13 . . . . . . 7

Schedule B Income Distribution Deduction 1 Adjusted total income. See instructions . . . . . . . . . . . . . . . . . . . . . 1 2 Adjusted tax-exempt interest . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Total net gain from Schedule D (Form 1041), line 19, column (1). See instructions . . . . . . . 3 4 Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion) . . . . . . 4 5 Capital gains for the tax year included on Schedule A, line 1. See instructions . . . . . . . . 5 6 Enter any gain from page 1, line 4, as a negative number. If page 1, line 4, is a loss, enter the loss as a

positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Distributable net income. Combine lines 1 through 6. If zero or less, enter -0- . . . . . . . . 7 8

If a complex trust, enter accounting income for the tax year as determined under the governing instrument and applicable local law . . . . . . . 8

9 Income required to be distributed currently . . . . . . . . . . . . . . . . . . . . 9 10 Other amounts paid, credited, or otherwise required to be distributed . . . . . . . . . . . 10 11 Total distributions. Add lines 9 and 10. If greater than line 8, see instructions . . . . . . . . 11 12 Enter the amount of tax-exempt income included on line 11 . . . . . . . . . . . . . . 12 13 Tentative income distribution deduction. Subtract line 12 from line 11 . . . . . . . . . . . 13 14 Tentative income distribution deduction. Subtract line 2 from line 7. If zero or less, enter -0- . . . 14 15 Income distribution deduction. Enter the smaller of line 13 or line 14 here and on page 1, line 18 . 15 Schedule G Tax Computation and Payments (see instructions)

Part I — Tax Computation 1 Tax:

a Tax on taxable income. See instructions . . . . . . . . . . . . 1a b Tax on lump-sum distributions. Attach Form 4972 . . . . . . . . . 1b c Alternative minimum tax (from Schedule I (Form 1041), line 54) . . . . . 1c d Total. Add lines 1a through 1c . . . . . . . . . . . . . . . . . . . . . . . ▶ 1d

2a Foreign tax credit. Attach Form 1116 . . . . . . . . . . . . . . 2a b General business credit. Attach Form 3800 . . . . . . . . . . . . 2b c Credit for prior year minimum tax. Attach Form 8801 . . . . . . . . 2c d Bond credits. Attach Form 8912 . . . . . . . . . . . . . . . 2d e Total credits. Add lines 2a through 2d . . . . . . . . . . . . . . . . . . . . ▶ 2e

3 Subtract line 2e from line 1d. If zero or less, enter -0- . . . . . . . . . . . . . . . . 3 4 Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See instructions . . . . 4 5 Net investment income tax from Form 8960, line 21 . . . . . . . . . . . . . . . . . 5 6 Recapture taxes. Check if from: . . . . . . . . . . . . Form 4255 Form 8611 6 7 Household employment taxes. Attach Schedule H (Form 1040) . . . . . . . . . . . . . 7 8 Other taxes and amounts due . . . . . . . . . . . . . . . . . . . . . . . . 8 9 Total tax. Add lines 3 through 8. Enter here and on page 1, line 24 . . . . . . . . . . . ▶ 9

Part II — Payments 10 2020 estimated tax payments and amount applied from 2019 return . . . . . . . . . . . 10 11 Estimated tax payments allocated to beneficiaries (from Form 1041-T) . . . . . . . . . . . 11 12 Subtract line 11 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Tax paid with Form 7004. See instructions . . . . . . . . . . . . . . . . . . . . 13 14 Federal income tax withheld. If any is from Form(s) 1099, check here ▶ . . . . . . . . . 14 15 2020 net 965 tax liability from Form 965-A, Part I, column (f), line 4 . . . . . . . . . . . . 15 16 Other payments: a Form 2439 ; b Form 4136 ; Total . . ▶ 16c 17 Refundable credit for qualified sick and family leave. Attach Schedule H (Form 1040) . . . . . . 17 18 Deferral. If filing Schedule H (Form 1040), see instructions for amount to enter . . . . . . . . 18 19 Total payments. Add lines 12 through 15 and 16c through 18. Enter here and on page 1, line 26 . ▶ 19

Form 1041 (2020)

Form 1041 (2020) Page 3 Other Information Yes No

1 Did the estate or trust receive tax-exempt income? If “Yes,” attach a computation of the allocation of expenses. Enter the amount of tax-exempt interest income and exempt-interest dividends . . . ▶ $

2 Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any individual by reason of a contract assignment or similar arrangement? . . . . . . . . . . . . . . .

3 At any time during calendar year 2020, did the estate or trust have an interest in or a signature or other authority over a bank, securities, or other financial account in a foreign country? . . . . . . . . . . . . . .

See the instructions for exceptions and filing requirements for FinCEN Form 114. If “Yes,” enter the name of the foreign country ▶

4 During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If “Yes,” the estate or trust may have to file Form 3520. See instructions . . . . . . . . .

5 Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing? If “Yes,” see the instructions for the required attachment . . . . . . . . . . . . . . . . . . . . . . .

6 If this is an estate or a complex trust making the section 663(b) election, check here. See instructions . . ▶

7 To make a section 643(e)(3) election, attach Schedule D (Form 1041), and check here. See instructions . . ▶ 8 If the decedent’s estate has been open for more than 2 years, attach an explanation for the delay in closing the

estate, and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

9 Are any present or future trust beneficiaries skip persons? See instructions . . . . . . . . . . . . . 10 Was the trust a specified domestic entity required to file Form 8938 for the tax year (see the Instructions for

Form 8938)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11a Did the estate or trust distribute S corporation stock for which it made a section 965(i) election? . . . . . . b If “Yes,” did each beneficiary enter into an agreement to be liable for the net tax liability? See instructions . . .

12 Did the estate or trust make a section 965(i) election for S corporation stock held on the last day of the tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13 ESBTs only. Does the ESBT have a nonresident alien grantor? If “Yes,” see instructions . . . . . . . . 14 ESBTs only. Did the S portion of the trust claim a qualified business income deduction? If “Yes,” see instructions

Form 1041 (2020)

Version A, Cycle 5

INTERNAL USE ONLY DRAFT AS OF July 21, 2020

2020 Form 1041

SE:W:CAR:MP

U.S. Income Tax Return for Estates and Trusts

Form

1041

2020

2020. Cat. No. 11370H.

U.S. Income Tax Return for Estates and Trusts

Department of the Treasury—Internal Revenue Service

▶ Go to www.irs.gov/Form1041 for instructions and the latest information.

OMB No. 1545-0092

O M B No. 1545-0092. For Paperwork Reduction Act Notice, see the separate instructions.

A   Check all that apply: 

B    Number of Schedules K-1attached (seeinstructions) ▶

E   Nonexempt charitable and split-interest trusts, check applicable box(es).See instructions. 

F  Check  applicable  boxes: 

G  Check here if the estate or filing trust made a section 645 election          ▶

Income

1

Interest income           

1

2

a

Total ordinary dividends          

2a

b

Qualified dividends allocable to:

3

Business income or (loss). Attach Schedule C (Form 1040)           

3

4

Capital gain or (loss). Attach Schedule D (Form 1041)           

4

5

Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040)          

5

6

Farm income or (loss). Attach Schedule F (Form 1040)          

6

7

Ordinary gain or (loss). Attach Form 4797           

7

8

8

9

Total income. Combine lines 1, 2a, and 3 through 8          ▶ 

9

Deductions

10

Interest. Check if Form 4952 is attached  ▶                  

10

11

Taxes           

11

12

Fiduciary fees. If only a portion is deductible under section 67(e), see instructions           

12

13

Charitable deduction (from Schedule A, line 7)           

13

14


Attorney, accountant, and return preparer fees. If only a portion is deductible under section 67(e), see instructions          

14

15

a

Other deductions (attach schedule). See instructions for deductions allowable under section 67(e)

15a

b

Net operating loss deduction. See instructions           

15b

16

Add lines 10 through 15b          ▶

16

17

Adjusted total income or (loss). Subtract line 16 from line 9           

17

18

Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041)          

18

19

Estate tax deduction including certain generation-skipping taxes (attach computation)           

19

20

Qualified business income deduction. Attach Form 8995 or 8995-A           

20

21

Exemption           

21

22

Add lines 18 through 21          ▶ 

22

Tax and Payments

23

Taxable income. Subtract line 22 from line 17. If a loss, see instructions          

23

24

Total tax (from Schedule G, Part I, line 9)           

24

25

2020 net 965 tax liability paid from Form 965-A, Part II, column (k), line 4           

25

26

Total payments (from Schedule G, Part II, line 19)           

26

27

Estimated tax penalty. See instructions          

27

28

Tax due. If line 26 is smaller than the total of lines 24, 25, and 27, enter amount owed           

28

29

Overpayment. If line 26 is larger than the total of lines 24, 25, and 27, enter amount overpaid           

29

30

 ;   b Refunded          ▶

30

Sign Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

▲

Signature of fiduciary or officer representing fiduciary

Date

EIN of fiduciary if a financial institution

May the IRS discuss this return with the preparer shown below? See instructions.

Paid Preparer Use Only

Preparer’s signature

Date

Check if self-employed

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 11370H

Form 1041 (2020) 

Form 1041 (2020)

Page 2 

Schedule A

Charitable Deduction. Don’t complete for a simple trust or a pooled income fund. 

1

Amounts paid or permanently set aside for charitable purposes from gross income. See instructions

1

2

Tax-exempt income allocable to charitable contributions. See instructions           

2

3

Subtract line 2 from line 1           

3

4 


Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes          

4

5

Add lines 3 and 4           

5

6 


Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable purposes. See instructions          

6

7

Charitable deduction. Subtract line 6 from line 5. Enter here and on page 1, line 13           

7

Schedule B

Income Distribution Deduction

1

Adjusted total income. See instructions           

1

2

Adjusted tax-exempt interest           

2

3

Total net gain from Schedule D (Form 1041), line 19, column (1). See instructions          

3

4

Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion)           

4

5

Capital gains for the tax year included on Schedule A, line 1. See instructions           

5

6 


Enter any gain from page 1, line 4, as a negative number. If page 1, line 4, is a loss, enter the loss as a positive number          

6

7

Distributable net income. Combine lines 1 through 6. If zero or less, enter -0-          

7

8


If a complex trust, enter accounting income for the tax year as determined under the governing instrument and applicable local law           

8

9

Income required to be distributed currently           

9

10

Other amounts paid, credited, or otherwise required to be distributed           

10

11

Total distributions. Add lines 9 and 10. If greater than line 8, see instructions          

11

12

Enter the amount of tax-exempt income included on line 11           

12

13

Tentative income distribution deduction. Subtract line 12 from line 11           

13

14

Tentative income distribution deduction. Subtract line 2 from line 7. If zero or less, enter -0-          

14

15

Income distribution deduction. Enter the smaller of line 13 or line 14 here and on page 1, line 18          

15

Schedule G

Tax Computation and Payments  (see instructions) 

Part I — Tax Computation

1

Tax:

a

Tax on taxable income. See instructions           

1a

b

Tax on lump-sum distributions. Attach Form 4972           

1b

c

Alternative minimum tax (from Schedule I (Form 1041), line 54)           

1c

d

Total. Add lines 1a through 1c           ▶

1d

2

a

Foreign tax credit. Attach Form 1116           

2a

b

General business credit. Attach Form 3800           

2b

c

Credit for prior year minimum tax. Attach Form 8801           

2c

d

Bond credits. Attach Form 8912           

2d

e

Total credits. Add lines 2a through 2d           ▶

2e

3

Subtract line 2e from line 1d. If zero or less, enter -0-           

3

4

Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See instructions           

4

5

Net investment income tax from Form 8960, line 21          

5

6

Recapture taxes. Check if from:                                                                  

6

7

Household employment taxes. Attach Schedule H (Form 1040)           

7

8

Other taxes and amounts due          

8

9

Total tax. Add lines 3 through 8. Enter here and on page 1, line 24           ▶

9

Part II — Payments

10

2020 estimated tax payments and amount applied from 2019 return          

10

11

Estimated tax payments allocated to beneficiaries (from Form 1041-T)         

11

12

Subtract line 11 from line 10         

12

13

Tax paid with Form 7004. See instructions         

13

14

Federal income tax withheld. If any is from Form(s) 1099, check here ▶                

14

15

2020 net 965 tax liability from Form 965-A, Part I, column (f), line 4           

15

16

Other payments:

; Total           ▶

16c

17

Refundable credit for qualified sick and family leave. Attach Schedule H (Form 1040)         

17

18

Deferral. If filing Schedule H (Form 1040), see instructions for amount to enter           

18

19

Total payments. Add lines 12 through 15 and 16c through 18. Enter here and on page 1, line 26           ▶

19

Form 1041 (2020) 

Form 1041 (2020)

Page 3 

Other Information

Yes

No

1

Did the estate or trust receive tax-exempt income? If “Yes,” attach a computation of the allocation of expenses. 

Enter the amount of tax-exempt interest income and exempt-interest dividends           ▶

2 


Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any  individual by reason of a contract assignment or similar arrangement?           

3 


At any time during calendar year 2020, did the estate or trust have an interest in or a signature or other authority  over a bank, securities, or other financial account in a foreign country?           

See the instructions for exceptions and filing requirements for FinCEN Form 114. If “Yes,” enter the name of the foreign country ▶

4 


During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If “Yes,” the estate or trust may have to file Form 3520. See instructions           

5 


Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing? If “Yes,” see the instructions for the required attachment           

6

If this is an estate or a complex trust making the section 663(b) election, check here. See instructions          ▶

7

To make a section 643(e)(3) election, attach Schedule D (Form 1041), and check here. See instructions          ▶

8 


If the decedent’s estate has been open for more than 2 years, attach an explanation for the delay in closing the estate, and check here          ▶

9

Are any present or future trust beneficiaries skip persons? See instructions           

10


Was the trust a specified domestic entity required to file Form 8938 for the tax year (see the Instructions for     Form 8938)?           

11

a

Did the estate or trust distribute S corporation stock for which it made a section 965(i) election?           

b

If “Yes,” did each beneficiary enter into an agreement to be liable for the net tax liability? See instructions          

12


Did the estate or trust make a section 965(i) election for S corporation stock held on the last day of the tax year? See instructions          

13

ESBTs only. Does the ESBT have a nonresident alien grantor? If “Yes,” see instructions          

14

ESBTs only. Did the S portion of the trust claim a qualified business income deduction? If “Yes,” see instructions

Form 1041 (2020)