What IRS Form 1041-A (2025) Is For

IRS Form 1041-A (2025) is an annual information return that trustees must file to report charitable purposes, income distributions, and charitable deductions under section 6034 of the Internal Revenue Code (IRS.gov). Any charitable trust claiming a deduction under section 642(c) must file this form, unless it qualifies for an exemption such as distributing all income to beneficiaries or operating as a private foundation described in section 4947(a)(1).

These filings ensure proper compliance with income tax law and accurate disclosure of trust assets, investment income, and related expenses. Trustees must maintain records showing how donors’ estates, charitable lead trusts, and other trusts distribute cash, property, or grants for approved charitable purposes.

When You’d Use Form 1041-A for 2025 (Late or Amended Filing)

You would file Form 1041-A (2025) if the trust missed the April 15, 2026, deadline or must correct a previous return. Typical filing situations include receiving IRS notices about unfiled returns, unreported contributions, or compliance checks.

Trustees of charitable lead annuity trusts, charitable remainder trusts, charitable lead unitrusts, and charitable remainder annuity trusts should determine if their trust agreements require filing Form 1041-A to report taxable income, net investment income, and related tax benefits. These arrangements often pay a fixed amount, a fixed percentage, or a fixed annuity to a charity before the remaining assets are distributed to a beneficiary, the donor, or the donor’s estate.

Key Rules Specific to 2025

• ESBT Exemption: Electing Small Business Trusts (ESBTs) remain exempt under section 6034.
  
  
• Split-Interest Trusts: Trusts under section 4947(a)(2) must file Form 5227 instead of 1041-A.
  
  
• Deadline: The due date is April 15, 2026, for calendar-year filers, or the 15th day of the fourth month following the end of the fiscal year.
  
  
• Extensions: Trustees can request a six-month extension using Form 8868.
  
  
• Penalties: A $10-per-day penalty (up to $5,000) applies to both the trust and trustee under section 6652(c)(2).

Trustees should include details about income, gains, deductions, and distributions to demonstrate that trust funds are used for qualified charitable purposes and in compliance with IRS authority.

Step-By-Step (High Level)

• Gather Documentation: Collect trust records, financial statements, and proof of charitable contributions and assets held during 2025.
  
  
• Use Correct Form Year: Complete the 2025 version of Form 1041-A and verify amounts for income, investment income, and deductions.
  
  
• Attach Schedules: List each organization, its address, and the value of payments, cash, or property made to further charitable purposes.
  
  
• File and Retain Copies: Mail returns to the IRS Service Center in Ogden, Utah 84201-0027 or e-file if supported. Always check for the locked padlock icon on IRS.gov before transmitting.
  
  
• Follow Up: Maintain account records and receipts to verify payments and confirm all tax benefits claimed.

During the trust term, the trust agreement defines how assets held are managed and when the trust terminates. Trustees must determine if amounts paid to charities, beneficiaries, or donors qualify for deductions under income tax law.

Common Mistakes and How to Avoid Them

• Vague Descriptions: Provide specific charitable purposes, not general labels like “charitable.”
  
  
• Missing Recipient Data: Include complete names, addresses, and organization types for each distribution.
  
  
• Incorrect Form Year: Use the 2025 edition of Form 1041-A, not prior years.
  
  
• Misclassified Distributions: Separate income distributions from principal to calculate taxable income accurately.
  
  
• Incomplete Balance Sheet: Finish Part IV when annual income exceeds $25,000 or expenses are significant.
  
  
• Unsigned Return: Ensure the trustee or authorized person signs the form to avoid rejection by the IRS.

What Happens After You File

The IRS generally processes Form 1041-A (2025) within 6 to 8 weeks. Trustees may receive requests for clarification about income, deductions, or charitable distributions. Penalties for late filing may be reduced if reasonable cause is shown. Payment arrangements for penalties can be made using Form 9465, and appeal rights are available.

If a charitable lead trust or charitable remainder trust files incorrectly, its trustees should consult with the IRS for guidance on how to correct the filing. When a trust terminates, the remaining assets may be transferred to a charity, the donor, or the beneficiary, depending on the terms of the trust agreement and applicable law. Such transfers may affect taxable income, profit, or deductions in the final tax return.

FAQs

Can I file Form 1041-A electronically for late returns?

E-filing for Form 1041-A (2025) is limited. Most trustees are required to mail their returns to the Ogden Service Center. Certified mail provides proof that the request was paid, sent, and received in accordance with IRS rules.

What penalties apply for filing Form 1041-A late?

Late returns incur a $ 10-per-day penalty under Section 6652(c)(2), up to $5,000 each for the trust and the trustee. Penalties may be waived if the circumstances show reasonable cause and no willful neglect.

Do I need account transcripts before filing a late tax return?

They’re not mandatory, but they help determine if prior returns exist and in checking for unpaid taxes, liabilities, or contributions already been reported.

How long do I have to file an amended Form 1041-A?

There’s no statutory deadline. Trustees can file amendments at any time to correct errors, report additional income, or update assets and distributions.

Should I also amend state charitable remainder trust filings?

Yes, you should if required by state authority. Some states require separate organization filings to reflect federal changes for charitable trusts, corporations, or donors.

Can a reasonable cause excuse late filing penalties?

Yes, it can. If trustees demonstrate illness, a natural disaster, or reliance on incorrect professional advice, the IRS may grant penalty relief.