Form 1041-QFT (2017)
If a QFT has multiple beneficiaries, each
The PDS can tell you how to get written
beneficiary’s separate interest under a
proof of the mailing date.
Section references are to the Internal
contract is treated as a separate QFT for the
For the IRS mailing address to use if you're
purpose of figuring the tax and filing this
using a PDS, go to
return. Each beneficiary’s share of the trust’s
income is determined in accordance with the
Private delivery services can't
For the latest information about developments
beneficiary’s interest in the trust. A
deliver items to P.O. boxes. You
related to Form 1041-QFT and its instructions,
beneficiary’s interest in a trust may be
must use the U.S. Postal Service
such as legislation enacted after they were
determined under any reasonable method.
to mail any item to an IRS P.O.
published, go to Form1041QFT.
Whenever these instructions refer to a trust
or QFT, it includes such separate interests
Extension of Time To File
that are treated as separate QFTs.
Net investment income tax. An estate or
Use Form 7004, Application for Automatic
Making the Election
trust may be subject to net investment
Extension of Time To File Certain Business
income tax (NIIT). NIIT is a 3.8% tax on the
The trustee makes the election to treat a trust
Income Tax, Information, and Other Returns,
lesser of an estate’s or trust’s undistributed
as a QFT by filing Form 1041-QFT for the
to get an extension of time to file. An
net investment income or the excess of the
trust by the due date (including extensions).
extension of time to file a return doesn’t
estate’s or trust’s adjusted gross income over
extend the time to pay the tax.
You may elect QFT status for a trust’s first
a specified threshold amount. NIIT may need
eligible year or for any subsequent year. Once
to be included when figuring estimated tax. In
Where To File
made, the election can’t be revoked without
addition, there are special rules when
the consent of the IRS.
File Form 1041-QFT at the following address.
calculating NIIT for a composite return. See
Composite Return, later.
Department of Treasury
Internal Revenue Service
Purpose of Form
A trustee may file a single, composite Form
Cincinnati, OH 45999
1041-QFT for some or all QFTs of which he or
The trustee of a trust that has elected to be
Who Must Sign
she is the trustee, including QFTs that had a
taxed as a qualified funeral trust (QFT) files
short tax year.
Form 1041-QFT to report the income,
deductions, gains, losses, and tax liability of
You must attach a statement to a
The trustee, or an authorized representative,
the QFT. The trustee can use the form to
composite Form 1041-QFT that includes the
must sign Form 1041-QFT.
report information for a single QFT or for
following information for each QFT (or
multiple QFTs having the same trustee. If filing
separate interest treated as a separate QFT).
Form 1041-QFT for multiple QFTs, please see
• The name of the owner or the beneficiary. If
Generally, anyone who is paid to prepare a
the rules discussed under Composite Return,
you list the name of the owner and that trust
tax return must sign the return and fill in the
has more than one beneficiary, you must
other blanks in the Paid Preparer Use Only
Pre-need funeral trusts that don’t qualify as
separate the trust into shares held by the
area of the return. The person required to sign
QFTs should see the Instructions for Form
the return must:
1041, U.S. Income Tax Return for Estates and
• The type and gross amount of each type of
• Complete the required preparer information,
Trusts, for their filing requirements.
income earned by the QFT for the tax year.
• Sign it in the space provided for the
For capital gains, identify separately the
Qualified Funeral Trust
preparer’s signature, and
amount of (a) net short-term capital gain,
A QFT is a domestic trust that meets all of
(b) net long-term capital gain, (c) 28% rate
• Give you a copy of the return in addition to
the following requirements.
gain, and (d) unrecaptured section 1250 gain.
the copy to be filed with the IRS.
• The trust arose as a result of a contract with
• The type and amount of each deduction and
Anyone who is paid to prepare the trust’s
a person engaged in the trade or business of
credit allocable to the QFT.
return must enter their PTIN in the Paid
providing funeral or burial services or property
Preparer Use Only section. The PTIN entered
• The tax and payments made for each QFT.
to provide such services.
must have been issued after September 27,
• The termination date for each QFT that was
2010. For information, see Form W-12, IRS
• The sole purpose of the trust is to hold,
terminated during the year.
Paid Preparer Tax Identification Number
invest, and reinvest funds in the trust and to
Note: When calculating NIIT for a composite
(PTIN) Application and Renewal.
use those funds solely to pay for funeral or
return, treat each beneficiary’s interest in each
burial services or property to provide such
Paid Preparer Authorization
QFT (within the meaning of section 685) as a
services for the benefit of the beneficiaries of
If the trustee wants to allow the IRS to
discuss the QFT’s 2017 tax return with the
• The only beneficiaries of the trust are
When To File
paid preparer who signed it, check the “Yes”
individuals for whom such services or
box in the signature area of the return. This
File Form 1041-QFT by April 17, 2018. (The
property are to be provided at their death
authorization applies only to the individual
filing date is extended to April 17 because
under the contracts described above.
whose signature appears in the Paid Preparer
April 15 falls on a Sunday and Emancipation
• The only contributions to the trust are
Use Only section of the QFT’s return. It
Day will be celebrated on Monday, April 16, in
contributions by or for such beneficiaries’
doesn’t apply to the firm, if any, shown in that
the District of Columbia.) The due date for a
composite return is also April 17, 2018, even if
• The trustee makes or previously had made
the return includes QFTs that terminated
If the “Yes” box is checked, the trustee is
the election to treat the trust as a QFT.
during the year. If you are filing for a short
authorizing the IRS to call the paid preparer to
year, file Form 1041-QFT by the 15th day of
answer any questions that may arise during
• The trust would have been treated as owned
the 4th month following the close of the short
the processing of the QFT’s return. The
by the purchasers of the contracts under the
year. If the due date falls on a Saturday,
trustee is also authorizing the paid preparer to:
grantor trust provisions of the Code if the QFT
Sunday, or a legal holiday, file by the next
election hadn’t been made.
• Give the IRS any information that’s missing
from the QFT’s return;
Note: A trust that isn’t treated as owned by
Private Delivery Services
the purchaser solely because of the death of
• Call the IRS for information about the
an individual will be treated as meeting this
processing of the QFT’s return or the status
You can use certain private delivery services
requirement during the 60-day period
of its refund or payment(s); and
(PDS) designated by the IRS to meet the
beginning on the date of that individual’s
“timely mailing as timely filing” rule for tax
• Respond to certain IRS notices that the
returns. Go to PDS for the
trustee has shared with the preparer about
current list of designated services.
math errors, offsets, and return preparation.