Form 1041-A Checklist: Tax Year 2015
Overview and Purpose
Form 1041-A serves as the U.S. Information Return for Trust Accumulation of Charitable Amounts. This form reports the charitable information required by Section 6034 and related regulations for trusts claiming philanthropic deductions under Section 642(c). The 2015 version reflects specific requirements for trusts that claim charitable or other deductions, with essential distinctions for different types of trusts.
Critical 2015 Tax Year Context
Form 1041-A applies to trusts claiming charitable deductions under Section 642(c), subject to specific exceptions. Split-interest trusts described in section 4947(a)(2) do not file Form 1041-A. Beginning with tax years after 2006, these split-interest trusts are required to file Form 5227 instead. This change was already established by 2015, having taken effect in 2007.
Who Must File for Tax Year 2015
The trustee must file Form 1041-A for any trust that claims a charitable or other deduction under section 642(c) unless a specific exception applies.
Filing Exceptions:
- Trusts are required to distribute all income currently to beneficiaries
- Charitable trusts described in section 4947(a)(1)
- Split-interest trusts described in section 4947(a)(2) that file Form 5227
- Electing small business trusts described in section 641(c)
Filing Deadline and Extensions
Form 1041-A for calendar year 2015 must be filed by April 15, 2016; if the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. Obtain an automatic six-month extension by filing Form 8868, Application for Automatic Extension of Time To File an Exempt Organization Return, on or before the original due date.
Where to File
Mail Form 1041-A to: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0027.
10-Step Filing Checklist
1. Gather Required Documentation
Collect all documents related to trust income and expenses for 2015.
Income Records:
- Interest income statements
- Dividend reports
- Business income records (Schedule C or C-EZ)
- Capital gains documentation (Schedule D)
- Rental and royalty income (Schedule E)
- Farm income (Schedule F)
- Ordinary gain or loss documentation (Form 4797)
Expense Records:
- Interest paid
- Taxes
- Trustee fees
- Attorney, accountant, and return preparer fees
- Charitable distributions with payee details
2. Determine Income Reporting Requirements
Review total income for 2015. If total income is $25,000 or less, skip lines 1–8 in Part I and enter total income directly on line 9. If total income exceeds $25,000, complete all income lines in Part I with detailed breakdowns by category.
3. Complete Part I - Income and Deductions
Report Income by Category:
- Line 1: Interest income from all sources
- Line 2a: Ordinary dividends
- Line 2b: Qualified dividends
- Line 3: Business income or loss (attach Schedule C or C-EZ)
- Line 4: Capital gain or loss (attach Schedule D)
- Line 5: Rents, royalties, partnerships, estates, trusts (attach Schedule E)
- Line 6: Farm income or loss (attach Schedule F)
- Line 7: Ordinary gain or loss (attach Form 4797)
- Line 8: Other income with detailed description
- Line 9: Total income (sum of lines 1-8)
Report Deductions:
- Line 10: Interest expenses
- Line 11: Taxes paid
- Line 12: Charitable deduction (itemize by purpose with payee names and addresses)
- Line 13: Trustee fees
- Line 14: Attorney, accountant, and return preparer fees
- Line 15: Other deductions (attach schedule)
4. Complete Part II - Distributions of Income Set Aside
Part II tracks accumulated income from prior years and current-year distributions for charitable purposes under Section 642(c).
- Line 16: Accumulated income set aside in prior tax years with section 642(c) deduction
- Lines 17a-17e: Income set aside in prior years and distributed during 2015. Provide detailed descriptions of each charitable activity, including specific purpose and complete payee information. Do not use general categories; describe particular purposes, such as “payments of $4,000 to indigent persons for medical purposes” or “grants of $25,000 to equip a chemistry lab at the university.”
Note: Amounts permanently set aside must have been earned from amounts transferred to the trust before October 9, 1969. This applies only to permanent set-asides for certain older trusts.
- Line 18: Total distributions (sum of lines 17a-17e)
- Line 19: Balance (subtract line 18 from line 16)
- Line 20: Income set aside during 2015 with section 642(c) deduction (from Part I, line 12)
- Line 21: Carryover (add lines 19 and 20)
5. Complete Part III - Distributions of Principal
Report distributions of trust principal made for charitable purposes.
- Line 22: Principal distributed in prior tax years for charitable purposes
- Lines 23a-23e: Principal distributed during 2015 for charitable purposes. Provide the same detailed descriptions required for Part II, including specific charitable activities, purposes, and complete payee information.
- Line 24: Total principal distributions (sum of lines 23a-23e)
6. Complete Part IV - Balance Sheets
Complete balance sheets using the trust’s accounting method. All filers complete columns (a) beginning-of-year and (b) end-of-year book values. If your income on line 9 is $25,000 or less, complete only lines 38, 42, and 45.
Assets:
- Line 25: Cash—non-interest-bearing
- Line 26: Savings and temporary cash investments
- Line 27: Accounts receivable (less allowance for doubtful accounts)
- Line 28: Notes and loans receivable (attach detailed schedule)
- Line 29: Inventories for sale or use
- Line 30: Prepaid expenses and deferred charges
- Line 31: Investments—U.S. and state government obligations (attach schedule)
- Line 32: Investments—corporate stock (attach schedule)
- Line 33: Investments—corporate bonds (attach schedule)
- Line 34: Investments—land, buildings, equipment: basis less accumulated depreciation (attach schedule)
- Line 35: Investments—other (attach schedule)
- Line 36: Land, buildings, equipment: basis less accumulated depreciation (attach schedule)
- Line 37: Other assets with descriptions
- Line 38: Total assets (sum of lines 25-37)
Liabilities:
- Line 39: Accounts payable and accrued expenses
- Line 40: Mortgages and other notes payable (attach schedule)
- Line 41: Other liabilities with descriptions
- Line 42: Total liabilities (sum of lines 39-41)
Net Assets:
- Line 43: Trust principal or corpus
- Line 44: Undistributed income and profits
- Line 45: Total net assets (add lines 43 and 44)
- Line 46: Total liabilities and net assets (must equal line 38)
7. Attach All Required Schedules
Ensure all referenced schedules are adequately prepared and attached:
- Schedule C or C-EZ for business income
- Schedule D for capital gains and losses
- Schedule E for rentals, royalties, and pass-through income
- Schedule F for farm income
- Form 4797 for sales of business property
- Investment schedules showing details of government obligations, corporate stocks, bonds, and other holdings
- Property schedules showing basis, depreciation, and book values
- Loan and mortgage schedules with creditor information and terms
8. Prepare Amended Returns if Necessary
If you are filing an amended 2015 Form 1041-A, please complete the entire return with the corrected information. Write “Amended Return” across the top. Attach a statement explaining the reasons for the amendments and identifying specific lines and amounts changed. Amended returns may be filed at any time to correct previously filed returns.
9. Sign and Date the Return
The trustee or authorized officer must sign the return under penalties of perjury and enter the date. If a paid preparer completed the return, the preparer must:
- Sign in the designated area
- Provide preparer tax identification number (PTIN)
- Check the self-employed box if applicable
- Provide firm EIN, name, address, and phone number
- Give the trustee a copy of the completed return
10. Review and File
Conduct a final review before mailing:
- Verify all applicable parts are complete and accurate
- Confirm all required signatures and dates are present
- Ensure all schedules and attachments are included
- Verify calculations are correct and amounts are properly carried between forms
- Check that monetary amounts are in U.S. dollars
- Review charitable descriptions to ensure they provide sufficient detail beyond general categories
- Confirm balance sheet totals reconcile (assets = liabilities + net assets)
- Verify mailing to correct the Ogden, UT address
- Ensure postmark is on or before April 15, 2016 (or extended deadline)
Important Compliance Considerations
Penalties: Section 6652(c)(2) provides penalties of $10 per day (maximum $5,000) against both the trust and the trustee for late filing without reasonable cause. Additional penalties apply for false or fraudulent returns.
Public Disclosure: Form 1041-A and attachments are subject to public disclosure. Ensure that the information is accurate and suitable for public viewing.
Recordkeeping: Maintain books and records that support all reported amounts for at least three years from the filing date, or longer if required by law.
Relationship to Other Returns: Form 1041-A is an informational return for documenting charitable deductions. It does not replace the filing requirements for Form 1041 income tax returns. Split-interest trusts file Form 5227 instead of Form 1041-A, but may still need to file Form 1041.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
