Form 1041-Qft - U.s. Income Tax Return For Qualified Funeral Trusts - 2014 Page 2
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Form 1041-QFT (2014)
Page
General Instructions
If a QFT has multiple beneficiaries, each
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beneficiary’s separate interest under a
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Section references are to the Internal
contract is treated as a separate QFT for the
Air, UPS 2nd Day Air A.M., UPS Worldwide
Revenue Code.
purpose of figuring the tax and filing this
Express Plus, and UPS Worldwide Express.
return. Each beneficiary’s share of the trust’s
Future Developments
The private delivery service can tell you
income is determined in accordance with the
how to get written proof of the mailing date.
For the latest information about developments
beneficiary’s interest in the trust. A
Extension of Time To File
related to Form 1041-QFT and its instructions,
beneficiary’s interest in a trust may be
such as legislation enacted after they were
determined under any reasonable method.
Use Form 7004, Application for Automatic
published, go to
Extension of Time To File Certain Business
Whenever these instructions refer to a trust
Income Tax, Information, and Other Returns,
or QFT, it includes such separate interests
Reminder
to get a 6-month extension of time to file. An
that are treated as separate QFTs.
Net investment income tax. An estate or
extension of time to file a return does not
Making the Election
trust may be subject to net investment
extend the time to pay the tax.
income tax (NIIT). NIIT is a 3.8% tax on the
The trustee makes the election to treat a trust
Where To File
lesser of an estate's or trust's undistributed
as a QFT by filing Form 1041-QFT for the
net investment income or the excess of the
File Form 1041-QFT at the following address:
trust by the due date (including extensions).
estate's or trust's adjusted gross income over
Department of Treasury
You may elect QFT status for a trust’s first
a specified threshold amount. NIIT may need
Internal Revenue Service
eligible year or for any subsequent year. Once
to be included when figuring estimated tax. In
Cincinnati, OH 45999
made, the election may not be revoked
addition, there are special rules when
without the consent of the IRS.
Who Must Sign
calculating NIIT for a composite return. See
Composite Return, later.
Composite Return
Trustee
Purpose of Form
A trustee may file a single, composite Form
The trustee, or an authorized representative,
1041-QFT for some or all QFTs of which he or
must sign Form 1041-QFT.
The trustee of a trust that has elected to be
she is the trustee, including QFTs that had a
taxed as a qualified funeral trust (QFT) files
Paid Preparer
short tax year.
Form 1041-QFT to report the income,
Generally, anyone who is paid to prepare a
You must attach a statement to a
deductions, gains, losses, and tax liability of
tax return must sign the return and fill in the
composite Form 1041-QFT that includes the
the QFT. The trustee can use the form to
other blanks in the Paid Preparer Use Only
following information for each QFT (or
report information for a single QFT or for
area of the return. The person required to sign
separate interest treated as a separate QFT):
multiple QFTs having the same trustee. If filing
the return must:
Form 1041-QFT for multiple QFTs, please see
• The name of the owner or the beneficiary. If
the rules discussed under Composite Return,
• Complete the required preparer information,
you list the name of the owner and that trust
later.
has more than one beneficiary, you must
• Sign it in the space provided for the
separate the trust into shares held by the
Pre-need funeral trusts that do not qualify
preparer’s signature, and
separate beneficiaries;
as QFTs should see the Instructions for Form
• Give you a copy of the return in addition to
1041, U.S. Income Tax Return for Estates and
• The type and gross amount of each type of
the copy to be filed with the IRS.
Trusts, for their filing requirements.
income earned by the QFT for the tax year.
Anyone who is paid to prepare the trust's
For capital gains, identify separately the
Qualified Funeral Trust
return must enter their PTIN in the Paid
amount of (a) net short-term capital gain,
Preparer Use Only section. The PTIN entered
A QFT is a domestic trust that meets all of
(b) net long-term capital gain, (c) 28% rate
must have been issued after September 27,
the following requirements:
gain, and (d) unrecaptured section 1250 gain;
2010. For information, see Form W-12, IRS
• The trust arose as a result of a contract with
• The type and amount of each deduction and
Paid Preparer Tax Identification Number
credit allocable to the QFT;
a person engaged in the trade or business of
(PTIN) Application and Renewal.
providing funeral or burial services or property
• The tax and payments made for each QFT;
Paid Preparer Authorization
to provide such services.
and
If the trustee wants to allow the IRS to
• The sole purpose of the trust is to hold,
• The termination date for each QFT that was
discuss the QFT’s 2014 tax return with the
invest, and reinvest funds in the trust and to
terminated during the year.
paid preparer who signed it, check the “Yes”
use those funds solely to pay for funeral or
box in the signature area of the return. This
Note. When calculating NIIT for a composite
burial services or property to provide such
authorization applies only to the individual
return, treat each beneficiary's interest in
services for the benefit of the beneficiaries of
whose signature appears in the Paid Preparer
each QFT (within the meaning of section 685)
the trust.
Use Only section of the QFT’s return. It does
as a separate trust.
• The only beneficiaries of the trust are
not apply to the firm, if any, shown in that
individuals for whom such services or
When To File
section.
property are to be provided at their death
If the “Yes” box is checked, the trustee is
File Form 1041-QFT by April 15, 2015. The due
under the contracts described above.
authorizing the IRS to call the paid preparer
date for a composite return is also April 15, 2015,
• The only contributions to the trust are
to answer any questions that may arise
even if the return includes QFTs that terminated
contributions by or for such beneficiaries’
during the processing of the QFT’s return.
during the year. If you are filing for a short year,
benefit.
The trustee is also authorizing the paid
file Form 1041-QFT by the 15th day of the 4th
• The trustee makes or previously had made
preparer to:
month following the close of the short year. If the
the election to treat the trust as a QFT.
due date falls on a Saturday, Sunday, or a legal
• Give the IRS any information that is missing
holiday, file by the next business day.
• The trust would have been treated as owned
from the QFT’s return,
by the purchasers of the contracts under the
Private Delivery Services
• Call the IRS for information about the
grantor trust provisions of the Code if the QFT
processing of the QFT’s return or the status
You can use certain private delivery services
election had not been made.
of its refund or payment(s), and
designated by the IRS to meet the “timely
Note. A trust that is not treated as owned by
mailing as timely filing/paying” rules for tax
• Respond to certain IRS notices that the
the purchaser solely because of the death of
returns and payments. These private delivery
trustee has shared with the preparer about
an individual will be treated as meeting this
services include only the following.
math errors, offsets, and return preparation.
requirement during the 60-day period
• DHL Express (DHL): DHL Same Day Service.
The trustee is not authorizing the paid
beginning on the date of that individual’s
preparer to receive any refund check, bind
• Federal Express (FedEx): FedEx Priority
death.
the QFT to anything (including any additional
Overnight, FedEx Standard Overnight, FedEx
tax liability), or otherwise represent the QFT
2Day, FedEx International Priority, and FedEx
before the IRS.
International First.
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