Instructions For Form 1041-Es - Estimated Income Tax For Estates And Trusts - 1999


Estimated Income Tax for Estates
OMB No. 1545-0971
and Trusts
Department of the Treasury
Section references are to the Inter nal Revenue Code.
Internal Revenue Service
A Change To Note
However, if a return was not filed for
all its income currently is allowed a
1998 or that return did not cover a full
$300 exemption, even if it distributes
For tax years beginning in 1999, the
12 months, item 2 does not apply.
amounts other than income during the
estimated tax safe harbor that is
tax year. All other trusts are allowed a
For this purpose, include household
based on the tax shown on the prior
$100 exemption.
employment taxes when figuring the
year tax return is increased to 105%
tax shown on the tax return, but only
Line 10—Credits
of that amount if the adjusted gross
if either of the following is true:
income on that return is more than
For details on credits you may claim,
The estate or trust will have Federal
$150,000, and less than
of gross
see the instructions for line 2,
income tax withheld from any income,
income for 1998 or 1999 is from
Schedule G, Form 1041.
farming or fishing.
Line 12—Other Taxes
The estate or trust would be
Purpose of Form
required to make estimated tax
Enter any other taxes such as:
payments (to avoid a penalty) even if it
Use this package to figure and pay
Alternative minimum tax.
did not include household
estimated tax for an estate or trust.
Tax from recapture of investment
employment taxes when figuring its
Estimated tax is the amount of tax an
credit, low-income housing credit,
estimated tax.
estate or trust expects to owe for the
qualified electric vehicle credit, or the
year after subtracting the amount of
Exceptions. Estimated tax payments
Indian employment credit.
are not required from:
any tax withheld and the amount of
Tax on accumulation distribution of
any credits.
1. An estate of a domestic decedent
This package is primarily for first-
or a domestic trust that had no tax
Tax figured under section 641(c) on
liability for the full 12-month 1998 tax
time filers. After the IRS receives the
income attributable to S corporation
first payment voucher, the estate or
stock held by an electing small
trust will receive a 1041-ES package
2. A decedent’s estate for any tax
business trust. For details, see the line
with the name, address, and employer
year ending before the date that is 2
8 instructions on page 18 of the 1998
identification number (EIN) preprinted
years after the decedent’s death; or
Instructions for Form 1041.
on the vouchers for the next tax year.
3. A trust that was treated as owned
Unless the fiduciary is a financial
Include household employment
by the decedent if the trust will receive
institution subject to the magnetic
taxes on line 12 if either of the
the residue of the decedent’s estate
tape filing requirement, use the
following is true:
under the will (or if no will is admitted
preprinted vouchers. If you, as
The estate or trust will have Federal
to probate, the trust primarily
fiduciary, did not receive any 1999
income tax withheld from any income,
responsible for paying debts, taxes,
preprinted vouchers, use the vouchers
and expenses of administration) for
in this package. However, do not use
any tax year ending before the date
The estate or trust would be
the vouchers to notify the IRS of a
that is 2 years after the decedent’s
required to make estimated tax
change of address. If the fiduciary has
payments (to avoid a penalty) even if it
moved, complete Form 8822, Change
did not include household
of Address, and send it to the service
How To Figure Estimated
employment taxes when figuring its
center where you file the estate’s or
estimated tax.
trust’s tax return.
Use the 1999 Estimated Tax
When To Make Estimated
Who Must Make Estimated
Worksheet and 1999 Tax Rate
Tax Payments
Tax Payments
Schedule on page 3; and the estate’s
or trust’s 1998 tax return and
Trusts. The trust may pay all of its
Generally, a fiduciary of an estate or
instructions as a guide for figuring the
estimated tax by April 15, 1999, or in
trust must pay estimated tax if the
1999 estimated tax.
four equal installments due by the
estate or trust is expected to owe,
following dates:
If the estate or trust receives its
after subtracting its withholding and
income unevenly throughout the year,
credits, at least $1,000 in tax for 1999
1st installment
April 15, 1999
it may be able to lower or eliminate
and can expect its withholding and
2nd installment
June 15, 1999
the amount of its required estimated
credits to be less than the smaller of:
3rd installment
Sept. 15, 1999
tax payment for one or more periods
1. 90% of the tax shown on the
by using the annualized income
4th installment
Jan. 18, 2000
1999 tax return; or
installment method. See Pub. 505, Tax
Note: The trust does not have to make
2. The tax shown on the 1998 tax
Withholding and Estimated Tax, for
the payment due on January 18, 2000,
return (105% of that amount if the
if it files the 1999 Form 1041 by
estate’s or trust’s adjusted gross
January 31, 2000, AND pays the entire
income (AGI) on that return is more
Instructions for 1999
balance due with the return.
than $150,000, and less than
Estimated Tax Worksheet
gross income for 1998 or 1999 is from
Estates. If the estate has adopted a
farming or fishing). To figure the
calendar year as its tax year, file using
Line 4—Exemption
the rules listed under Trusts above.
estate’s or trust’s AGI, see the
Decedent’s estate. A decedent’s
instructions for line 15b of Form 1041,
If the estate has adopted a fiscal
estate is allowed a $600 exemption.
U.S. Income Tax Return for Estates
year, it may pay all of its estimated tax
and Trusts.
Trust. A trust that is required by its
by the 15th day of the 4th month of its
governing trust instrument to distribute
1999 tax year or in four equal
Cat. No. 63550R


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