Question
How can a trustee of a grantor trust change from the traditional filing method to one of the optional filing methods after the first year?
How can a trustee of a grantor trust change from the "traditional" filing method to one of the optional filing methods after the first year?
Request a new EIN for the trust and use the optional method under the new number.
File a final Form 1041 for the year before the filing method is changed and attach a statement indicating that the return will be the final Form 1041 filed for the trust.
Instruct the grantor to include an election statement with their individual return.
Discontinue grantor-trust status for one year and re-establish it in the following year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started