What IRS Form 1041-QFT (2019) Is For

IRS Form 1041-QFT is the specialized income tax return for Qualified Funeral Trusts (QFTs). A QFT is a domestic trust created under contracts with funeral service providers to hold and invest funds for funeral expenses. Trustees must file this form to report income, deductions, gains, losses, and tax liability when gross income is $600 or more.

When You'd Use Form 1041-QFT for 2019 (Late or Amended Filing)

You would file a late or amended Form 1041-QFT for 2019 if the April 15, 2020 deadline was missed, often after IRS notices about unfiled returns or balance due amounts. Trustees may also file amendments to correct errors, adjust deductions, or report unreported income. Refund claims are generally time-barred, except for COVID-19 relief-related deadline extensions.

Key Rules Specific to 2019

• Tax brackets: 10% up to $2,600; 24% $2,600–$9,300; 35% $9,300–$12,750; 37% over $12,750
  
  
• Capital gains rates: 0% up to $2,650; 15% $2,650–$12,950; 20% above $12,950
  
  
• Net Investment Income Tax (NIIT): 3.8% on undistributed net investment income above thresholds
  
  
• GILTI: Global Intangible Low-Taxed Income rules may apply if trusts hold foreign corporation interests
  
  
• Composite returns: Allowed, but calculations must be performed separately per beneficiary
  
  

Step-by-Step (High Level)

• Gather IRS transcripts using Form 4506-T or IRS helpline (800-908-9946)
  
  
• Complete the 2019 Form 1041-QFT with proper per-beneficiary reporting
  
  
• Attach Schedule D for capital gains and Form 8960 for NIIT if required
  
  
• File by mail to IRS, Kansas City, MO 64999, with certified mailing proof
  
  
• Maintain full copies, supporting schedules, and correspondence for records
  
  

Common Mistakes and How to Avoid Them

• Not making the QFT election on time, which must be filed in the first eligible year
  
  
• Failing per-beneficiary allocations for income and deductions
  
  
• Missing estimated tax requirements when $1,000 or more is owed
  
  
• Forgetting to calculate and report Net Investment Income Tax on Form 8960
  
  
• Confusing composite reporting with single-entity reporting
  
  
• Claiming personal exemptions not permitted for QFTs
  
  

What Happens After You File

The IRS generally processes QFT returns within 12–16 weeks, though late filings may take longer. Trustees may receive IRS notices for missing or incorrect information, adjustments, or balances due. Penalties and interest accrue until payment is made. Installment agreements can be requested using Form 9465, and penalty abatement may be sought with reasonable cause. Appeals are available if disputes arise.

FAQs

Can I still get a refund for my 2019 QFT return filed late?

Refund claims for 2019 generally expired in 2022–2023 under the three-year statute of limitations. Limited exceptions, such as COVID-19 relief extensions, may apply. If estimated payments or withholdings created an overpayment, filing may confirm balances, but refunds are unlikely unless a qualifying extended relief provision applies.

What penalties apply to late-filed 2019 Form 1041-QFT?

The failure-to-file penalty is 5% of unpaid tax per month, up to 25%. If more than 60 days late, the minimum penalty is the smaller of $330 or the full tax due. Late payment penalties of 0.5% per month and interest also apply until taxes are fully paid.

Do I need account transcripts before filing my late return?

It is not required, but transcripts help confirm reported income and identify balances or prior filings. Request them through IRS.gov, by calling 800-908-9946, or by submitting Form 4506-T. This ensures accuracy and avoids duplicate reporting or overlooked estimated payments when preparing late or amended returns.

Should I also amend my state trust return?

In most cases, yes. Many states follow federal QFT treatment, meaning amended federal returns may require state amendments as well. Each state’s rules and deadlines differ, so trustees should verify requirements with their state tax agency to avoid penalties or discrepancies at the state level.

Can I file the 2019 return electronically?

No, electronic filing is not available for prior year Form 1041-QFT returns. Trustees must file paper returns by mailing them to the IRS processing center in Kansas City, Missouri. Use certified mail or an authorized private delivery service to ensure proof of timely filing.

What if I discover errors after filing my amended return?

You may file another amended Form 1041-QFT if new errors are discovered. Clearly mark the form as “Amended Return,” explain changes in attached statements, and provide supporting documentation. Multiple amendments are allowed, but trustees should ensure corrections are complete and accurate to minimize additional IRS review.

How do I calculate estimated tax penalties for 2019?

Penalties are calculated using Form 2210. Trustees must calculate estimated taxes separately for each QFT, not on a composite return basis. Safe harbor rules may reduce penalties if payments equal 100% of the prior year’s liability or 90% of the current year’s liability.