Trustees of Alaska Native Settlement Trusts (ANSTs) need to file Form 1041-N to elect special income tax treatment for the trust and its beneficiaries in the first tax year. The document is used to compute and pay taxes that are due, as well as fulfill other information reporting requirements.
What is Form 1041-N?
Form 1041-N is used by Alaska Native Settlement Trusts (ANSTs) to make a one-time election under section 646 for special income tax treatment for the trust and its beneficiaries, and to report trust income, deductions, and other information. To make the election, the trustee must fill out the form and file it by the due date for the trust’s first tax year. If the ANST has any taxable income or gross income of $600 or more, the ANST must file Form 1041-N. Under the election, an ANST initially pays income tax at the 10% rate, and then Trustees must report income assignments from an Alaska Native Corporation, figure taxable income in the same manner as any other taxable trust, and provide a copy of Schedule K to the sponsoring ANC by the filing date. Interest and penalties may be imposed for late payment or filing, and the trustee may also be liable for other penalties such as those for negligence, substantial understatement of tax, and fraud.
IRS Form 1041-N – Who Needs to Fill It Out?
Form 1041-N must be filled out by the trustee of any electing Alaska Native Settlement Trust (ANST) that has taxable income, or more than $600 in gross income, for the tax year. This one-time election is made through Form 1041-N by the due date (including extensions) for filing the trust’s tax return for its first tax year. If the due date falls on a Saturday, Sunday, or holiday, the form must be filed by the next business day. To receive an extension of time to file Form 1041-N, use Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. The trustee or an authorized representative must sign the form when filing. If the trustee wishes to allow the IRS to discuss the ANST’s tax return with the paid preparer, they may do so by checking the “Yes” box.
Step-by-Step: Form 1041-N Instructions For Filling Out the Document
The trustee of an Alaska Native Settlement Trust (ANST) must file Form 1041-N to elect special income tax treatment for the trust and its beneficiaries. This form is used to report the trust’s income, deductions, gains, and losses in order to figure and pay any taxes due. It is also used to report special information applicable to the trust’s filing requirements. When filing this form, the trustee must sign it in the signature box on the front page, and include copies of Schedule K and other required information. The form must then be filed by the 15th day of the 4th month following the tax year, either directly or via a designated private delivery service, and any taxes due must be paid by the due date as well. If the trustee requires additional time to file, they can apply for an extension using Form 7004. Lastly, the trustee must be aware of penalties associated with late filing and payment, and of other penalties that may be imposed for negligence, substantial understatement of tax, or fraud.
Below, we present a table that will help you understand how to fill out Form 1041-N.
|Information Required for Form 1041-N||Details|
|ANST Trustee||Responsibilities of the trustee|
|Filing Deadline||Due date for submitting Form 1041-N|
|Documentation||Required documentation and attachments|
|Penalties||Penalties for late filing and other violations|
Do You Need to File Form 1041-N Each Year?
ANSTs must file Form 1041-N each year if they have any taxable income or gross income of at least $600. An automatic extension of time can be requested (Form 7004) but taxes are still due in the original due date. Form 1041-N is due by the 15th day of the 4th month following the close of the tax year and must be signed by the trustee or an authorized representative. Penalties may be assessed for late filing and payment. See Internal Revenue Code subchapter J for more information about filing requirements.
Download the official IRS Form 1041-N PDF
On the official IRS website, you will find a link to download Form 1041-N. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1041-N