Form 1041 A – Fill Out and Use This PDF

Form 1041-A

(Rev. September 2018)

Department of the Treasury Internal Revenue Service

Name of trust

U.S. INFORMATION RETURN
TRUST ACCUMULATION OF CHARITABLE AMOUNTS	OMB No. 1545-0094

▶Go to WWW.IRS.GOV/FORM1041A for the latest information. For calendar year 20

Employer identification number

16Accumulated income set aside in prior tax years for which a deduction was claimed under section

642(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17Income set aside in prior tax years for which a deduction was claimed under section 642(c) and which was distributed during the current tax year (itemize by charitable purpose; include payee’s name and address):

a		17a
b		17b
c		17c
d		17d
e		17e
18	Total (add lines 17a through 17e)
19	Balance (subtract line 18 from line 16)

20Income set aside during the current tax year for which a deduction was claimed under section 642(c) (included in Part I, line 12) . . . . . . . . . . . . . . . . . . . . .

21Carryover (add lines 19 and 20) . . . . . . . . . . . . . . . . . . . . .

16

18

19

20

21

22	Principal distributed in prior tax years for charitable purposes

23Principal distributed during the current tax year for charitable purposes (itemize by charitable purpose; include payee’s name and address):

a		23a
b		23b
c		23c
d		23d
e		23e
24	Total (add lines 23a through 23e)

22

24

Section references are to the Internal Revenue Code unless otherwise noted.

Future Developments

For the latest information about developments related to Form 1041-A and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form1041A.

What’s New

The Tax Cuts and Jobs Act of 2017 (P.L. 115-97) amended section 641(c)(2). As a result, electing small business trusts (ESBTs) are no longer subject to the charitable information reporting requirements under section 6034 and do not file Form 1041-A.

Reminder

Split-interest trusts as described in section 4947(a)(2) don’t file Form

1041-A. These types of trusts file Form 5227, Split-Interest Trust Information Return, which meets the section 6034 filing requirements.

General Instructions

Purpose of Form

Use Form 1041-A to report the charitable information required by section 6034 and the related regulations.

Who Must File

The trustee must file Form 1041-A for a trust that claims a charitable or other deduction under section 642(c) unless an exception applies.

Exceptions. The trustee doesn’t file Form 1041-A for:

•A trust that is required to distribute currently to the beneficiaries all the income for the tax year determined under section 643(b) and related regulations;

•A charitable trust described in section 4947(a)(1);

•For tax years beginning after 2006, a split-interest trust described in section 4947(a)(2); or

•Electing small business trusts (ESBTs) described in section 641(c).

When To File

File Form 1041-A by April 15 following the close of the calendar year. If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day.

Extension of Time To File

The trustee may obtain an automatic extension of time to file Form 1041-A by filing Form 8868, Application for Automatic Extension of Time To File an Exempt Organization Return.

To receive the automatic extension, the trustee must file Form 8868 on or before the original due date of Form 1041-A.

Amended Return

If you are filing an amended Form

1041-A, you must complete the entire return, not just the new or corrected information. Enter “Amended Return” across the top of the amended Form 1041-A.

The trustee may file an amended return at any time to change or add to the information reported on a previously filed return for the same period.

Where To File

File Form 1041-A at the following address.

Department of the Treasury Internal Revenue Service Center Ogden, UT 84201-0027

Penalties

Section 6652(c)(2) provides for separate penalties of $10 a day, up to a maximum of $5,000, against both the trust and the trustee for not filing Form 1041-A on time, unless there is reasonable cause. The law also provides penalties for filing a false or fraudulent return.

Rounding Off to Whole Dollars

You may show the money items on the return and accompanying schedules as whole-dollar amounts. To do so, drop amounts less than 50 cents and increase any amounts from 50 to 99 cents to the next dollar.

Attachments

If you need more space, attach separate sheets showing the same information in the same order as on the printed forms. Show the totals on the printed forms.

Enter the trust’s employer identification number (EIN) on each sheet. Also, use sheets that are the same size as the forms and indicate clearly the line of the printed form to which the information relates.

Public Inspection

See Regulations section 301.6104(b)- 1(d) for the procedures to request public inspection of this form.

Specific Instructions

Part II. Distributions of Income Set Aside for Charitable Purposes

Lines 17a–17e. Provide a listing in sufficient detail for each class of activity for which a disbursement was made, and a charitable deduction under section 642(c) was taken.

Such amounts permanently set aside

must be earned from amounts transferred to the trust before October 9, 1969.

Do not merely enter the category (that is, religious, charitable, scientific, literary, or educational), but also enter the purpose of the deduction. For example, “payments of $4,000 to indigent persons for medical purposes,” or a “grant of $25,000 to equip the chemistry lab at a university.”

Part III. Distributions of Principal for Charitable Purposes

Lines 23a–23e. Provide a listing in sufficient detail, similar to the examples provided above, for each class of activity for amounts paid out of principal for charitable purposes.

See the Instructions for Form 1041, U.S. Income Tax Return for Estates and Trusts, for more information regarding the allowance of deductions for amounts permanently set aside for a charitable purpose.

Part IV. Balance Sheets

Complete the balance sheets using the accounting method the trust uses in keeping its books and records. All filers must complete columns (a) and (b).

Assets

When space is provided to the left of column (a) for reporting receivables and the related allowance for doubtful accounts or depreciable assets and accumulated depreciation, enter the end-of-year figures.

Line 25. Cash—non-interest bearing. Enter the amount of cash on deposit in checking accounts, deposits in transit, change funds, petty cash funds, or any other non-interest bearing accounts. Do not include advances to employees or officers or refundable deposits paid to suppliers or others.

Line 26. Savings and temporary cash investments. Enter the total of cash in savings or other interest-bearing accounts and temporary cash investments, such as money market funds, commercial paper, certificates of deposit, and U.S. Treasury bills or other governmental obligations that mature in less than 1 year.

Line 27. Accounts receivable. Enter the total accounts receivable (reduced by the corresponding allowance for doubtful accounts) that arose from the sale of goods and/or the performance of services. Claims against vendors or refundable deposits with suppliers or others may be reported here if not significant in amount. If significant in amount, report them (with any advances to employees or officers) on line 37, Other assets.

Line 28. Notes and loans receivable. Enter the combined total of notes receivable and net loans receivable (including receivables due from officers, directors, trustees, and other disqualified persons). In an attached schedule, show the following information (preferably in columnar format).

•Borrower’s name and title.

•Original amount.

•Balance due.

•Date of note.

•Maturity date.

•Repayment terms.

•Interest rate.

•Security provided by the borrower.

•Purpose of the loan.

•Description and fair market value of the consideration furnished by the lender.

Line 29. Inventories for sale or use. Enter the amount of materials, goods, and supplies purchased or manufactured by the trust and held for sale or use in some future period.

Line 30. Prepaid expenses and deferred charges. Enter the amount of short-term and long-term prepayments of future expenses attributable to one or more future accounting periods. Examples include prepayments of rent, insurance, and pension costs.

Lines 31, 32, and 33. Investments— government obligations, corporate stocks, and corporate bonds. Enter the book value (which may be market value) of these investments. Attach a schedule that lists each security held at the end of the year and shows whether the security is listed at cost (including the value recorded at the time of receipt in the case of donated securities) or end-of-year market value. Do not include amounts on line 26. Government obligations reported on line 31 are those that mature in 1 year or more. Debt securities of the U.S. government may be reported as a single total rather than itemized. Obligations of state and municipal governments may also be reported as a lump-sum total. Do not combine U.S. government obligations with state and municipal obligations on the attached schedule.

Line 34. Investments—land, buildings, and equipment. Attach a schedule of all land, buildings, and equipment that are held for investment purposes, such as rental properties. List the cost or other basis of these assets, accumulated depreciation, and end-of-year book value.

Line 35. Investments—other. Enter the amount of all other investment holdings not reported on lines 31 through 34.

Attach a schedule describing each of these investments held at the end of the year. List the cost, or other basis, and the end-of-year book value.

Line 36. Land, buildings, and equipment. Attach a schedule of all land, buildings, and equipment that aren’t held for investment purposes, such as the trust’s offices. List the cost or other basis of these assets, accumulated depreciation, and end-of- year book value.

Line 37. Other assets. Enter the book value of any trust assets that haven’t been reported on lines 25 through 36. If more space is needed, attach a separate schedule with a description of the asset, date acquired, and end-of-year book value.

Liabilities

Line 39. Accounts payable and accrued expenses. Enter the total accounts payable to suppliers and others, and accrued expenses such as salaries payable, accrued payroll taxes, and interest payable.

Line 40. Mortgages and other notes payable. Attach a schedule showing, as of the end of the year, the total amount of all mortgages payable, and for each nonmortgage note payable, the lender’s name and the other information specified in the line 28 instructions.

Line 41. Other liabilities. Enter the book value of any trust liabilities that haven’t been reported on line 39 or 40. If more space is needed, attach a separate schedule with a description of the liability and amount.

Signature

Form 1041-A must be signed by the trustee or by an authorized representative.

If you, as trustee (or an employee or officer of the trust), fill in Form 1041-A, the Paid Preparer space should be left blank. If someone prepares this return without charge, that person shouldn’t sign the return.

Generally, anyone who is paid to prepare a tax return must sign the return and fill in the other blanks in the Paid Preparer Use Only area of the return.

If you have questions about whether a preparer is required to sign the return, please contact an IRS office.

The person signing the return as the preparer should complete the requested preparer information and do the following.

•Sign it in the space provided for the preparer’s signature. (A facsimile signature is acceptable.)

•Give the trustee a copy of the return in addition to the copy to be filed with the IRS.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You aren’t required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Code section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:

Recordkeeping . . .	24 hr., 52 min.
Learning about the
law or the form . . .	.	2 hr., 37 min.
Preparing the form .	.	7 hr., 48 min.
Copying, assembling,
and sending the
form to the IRS . . .	.	1 hr., 20 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can send us comments through www.irs.gov/FormComments. Or you can write to: Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the tax form to this address. Instead, see Where To File, earlier.