Form 1041-QFT (2017)
Late Filing of Return
The trustee isn’t authorizing the paid
A QFT without an EIN can apply for one.
preparer to receive any refund check, bind
• Online—A QFT can receive an EIN by
The law provides a penalty of 5% of the tax
the QFT to anything (including any additional
Internet and use it immediately to file a return.
due for each month, or part of a month, up to
tax liability), or otherwise represent the QFT
Go to the IRS website at
a maximum of 25% of the tax due, for each
before the IRS.
month the return isn’t filed. If the return is
The authorization will automatically end no
Employer-ID-Numbers-EINS and click on
more than 60 days late, the minimum penalty
later than the due date (without regard to
“Apply for an EIN Online.”
is the smaller of $210 or the tax due.
extensions) for filing the QFT’s 2018 tax
• By mail or fax—Send in a completed Form
The penalty won’t be imposed if you can
return. If the trustee wants to expand the paid
SS-4. Form SS-4 can be obtained online at
show that the failure to file on time was due to
preparer’s authorization or revoke the
reasonable cause. If you receive a notice
authorization before it ends, see Pub. 947,
about penalty or interest after filing the return,
If the QFT hasn’t received its EIN by the
Practice Before the IRS and Power of
send us an explanation and we will determine
time the return is due, write “Applied for” in
whether you meet the reasonable cause
the space for the EIN.
criteria. Do not attach an explanation to the
Figure taxable income using the method of
Include the suite, room, or other unit number
Late Payment of Tax
accounting regularly used in keeping the
after the street address. If the post office
QFT’s books and records. Generally,
Generally, the penalty for not paying the tax
doesn’t deliver mail to the street address and
permissible methods include the cash
when due is
of 1% of the unpaid amount
you have a P.O. box, show the box number
method, the accrual method, or any other
for each month or part of a month that it
instead of the street address.
method authorized by the Internal Revenue
remains unpaid. The maximum penalty is 25%
If you want a third party (such as an
Code. In all cases, the method used must
of the unpaid amount. The penalty applies to
accountant or an attorney) to receive mail for
clearly reflect income.
any unpaid tax on the return. Any penalty is in
the QFT, enter “C/O” on the street address
addition to interest charges on late payments.
Generally, the QFT may change its
line, followed by the third party's name and
accounting method (for income as a whole or
Underpaid Estimated Tax
street address or P.O. box.
for any material item) only by getting consent
If you change your address (including a new
If the trustee underpaid estimated tax, use
on Form 3115, Application for Change in
“in care of” name and address) after filing
Form 2210, Underpayment of Estimated Tax
Accounting Method. For more information, see
Form 1041-QFT, use Form 8822-B, Change of
by Individuals, Estates, and Trusts, to figure
Pub. 538, Accounting Periods and Methods.
Address or Responsible Party — Business, to
notify the IRS.
If you include interest or any of
All QFTs must use a calendar year as their
Line 4—Number of QFTs
these penalties with your payment,
identify and enter these amounts
If this is a composite return, enter the total
in the bottom margin of Form
number of QFTs (including separate interests
Rounding Off to Whole Dollars
1041-QFT. Don’t include the interest or
treated as separate QFTs) included on the
You may round off cents to whole dollars on
penalty amount in the balance of tax due on
your return and statements. If you do round to
Part II—Tax Computation
whole dollars, you must round all amounts. To
round, drop amounts under 50 cents and
increase amounts from 50 to 99 cents to the
Other penalties can be imposed for
next dollar. For example, $1.39 becomes $1
negligence, substantial understatement of tax,
If this is a composite return,
and $2.50 becomes $3. If you have to add
and fraud. See Pub. 17, Your Federal Income
enter in Part II the totals for all the
two or more amounts to figure the amount to
Tax, for details on these penalties.
QFTs included on the return.
enter on a line, include cents when adding the
Final Form 1041
amounts and round off only the total.
If you have an existing EIN(s) that you
previously used for filing Form 1041 and that
Line 2a—Total Ordinary Dividends
Generally, a QFT must pay estimated income
you won’t use again (that is, for QFTs
Report all ordinary dividends received during
tax for 2018 if it expects to owe, after
included in a composite return), you should
the tax year.
subtracting withholding and credits, at least
file Form 1041 and check the final return box.
Report capital gain distributions on
$1,000 in tax. Estimated tax liability is figured
Schedule D (Form 1041), line 13.
for the individual QFT, and not for a
composite return taken as a whole. For details
Line 2b—Qualified Dividends
and exceptions, see Form 1041-ES,
Part I—General Information
Enter on line 2b the amount reported on line
Estimated Income Tax for Estates and Trusts.
2a that is a qualified dividend. A qualified
Line 1—Name of Trust
Interest and Penalties
dividend is a dividend received during the tax
Copy the exact name from the Form SS-4,
year from (a) a domestic corporation, or (b) a
Application for Employer Identification
qualified foreign corporation. A qualified
Number, used to apply for the EIN you are
dividend doesn’t include any dividend from a
Interest is charged on taxes not paid by the
using to file Form 1041-QFT.
corporation if the corporation is (or was)
due date, even if an extension of time to file is
exempt from income tax under section 501 or
Line 2—Employer Identification
granted. Interest is also charged on the
521 for the tax year during which the
failure-to-pay penalty, failure-to-file penalty,
distribution was made, any amount allowed
the accuracy-related penalty, and the fraud
If the QFT isn’t filing as part of a composite
as a deduction under section 591, or any
penalty. The interest charge is figured at a
return, use the EIN of the QFT. If the QFT
dividend described under section 404(k).
rate determined under section 6621.
doesn’t have an EIN, it must apply for one.
Exception. Some dividends may be reported
Every trustee that elects to file a composite
to the trust as qualified dividends but aren’t
return must apply for an EIN to be used only
qualified dividends. See the instructions for
for filing Form 1041-QFT. A trustee must use
line 2b(2) in the 2017 Instructions for Form
a separate EIN for every Form 1041-QFT it
1041 for more information.