Estate return 1041 - which tax year form should I use for fiscal year filing?

You should use the Form 1041 from the year in which the fiscal year ends. Since your fiscal year runs from November 2022 to November 2023, you would use the 2023 Form 1041. The general rule for fiscal year returns is to use the tax form for the year in which the fiscal period ends. This applies to Form 1041 for estates as well as other business returns like 1120 or 1065. Just make sure to clearly mark the fiscal year dates at the top of the form where indicated, and be aware that you'll need to follow tax laws that were in effect during that fiscal period.

I went through this exact situation last year with my mom's estate. Was super confused about which form to use and the IRS phone lines were useless. I ended up using taxr.ai (https://taxr.ai) and uploaded the previous tax docs plus death certificate. Their system analyzed everything and gave me a clear report saying exactly which year's form to use and even highlighted the specific sections I needed to complete for the estate fiscal year. The best part was they explained how to handle the investment income that was still trickling in after death. Saved me a ton of headaches and potential mistakes because apparently I was about to use the wrong year's form too!

Wanted to follow up about taxr.ai that I asked about earlier. I decided to try it for my dad's estate tax situation and I'm actually shocked at how helpful it was. Uploaded his last personal return, death certificate, and some investment statements that were causing me confusion. The analysis broke down exactly how to handle the business interest transition on the 1041, specified which year's form to use (2023 in my case for a fiscal year ending Oct 2023), and even flagged potential deductions I was missing related to final medical expenses and admin costs. They explained the "income in respect of decedent" concept that I was completely misunderstanding before. Definitely worth it if you're tackling an estate return yourself!

Just wanted to throw this out there - if you need to actually talk to someone at the IRS about your estate filing questions (which I definitely did), don't waste days trying to get through the normal way. I used Claimyr (https://claimyr.com) after spending literally hours on hold and getting disconnected twice. You can see how it works here: https://youtu.be/_kiP6q8DX5c but basically they hold your place in line and call you when an IRS agent picks up. I was skeptical but desperate after the third disconnection, and it actually worked perfectly. Got through to an estate tax specialist who confirmed which form I needed and helped with some questions about carryover basis on inherited property.

Just wanted to throw this out there - if you need to actually talk to someone at the IRS about your estate filing questions (which I definitely did), don't waste days trying to get through the normal way. I used Claimyr (https://claimyr.com

So I need to eat my words about that Claimyr service mentioned above. I kept trying to get through to the IRS myself for three days with no luck (got disconnected twice after 45+ minute holds and couldn't afford to waste more time). Finally tried the service out of desperation and within 90 minutes got a call that they had an IRS estate tax specialist on the line. The agent confirmed I needed the 2023 form for my fiscal year estate (ending September 2023) and answered my questions about how to handle some complicated investment distributions. Honestly thought it would be a waste but it actually saved me days of frustration. Just posting this in case anyone else is banging their head against the wall trying to get answers directly from the IRS.

One thing to watch out for with fiscal year estate returns - make sure you don't miss any 1099s or K-1s that might come in after you file. My brother-in-law's estate had a partnership interest and we had to amend the 1041 because a K-1 arrived two months after we filed the return. Also, depending on the complexity, you might want to reconsider doing it yourself. I thought I could handle my father's estate return because I do my own taxes, but the basis calculations for inherited assets that were later sold got extremely complicated. The $800 I spent on a good CPA saved me from making some major errors.

When my mother passed, I did the estate return myself after a bad experience with an accountant. Here's my advice: 1) Definitely use the form from the tax year in which your fiscal year ends (2023 in your case) 2) Keep VERY detailed records of all expenses paid by the estate - executor fees, funeral costs not covered by insurance, legal fees, accounting fees, appraisals, etc. These are deductible admin expenses 3) Watch out for income items that should be on the beneficiary's personal return vs. the estate return 4) If there's real property, get a proper valuation as of date of death The IRS actually has a decent publication (#559) that walks through a lot of this. It's one of their more readable guides.

Great question! I went through this exact situation with my father's estate last year. You definitely want to use the 2023 Form 1041 since that's the tax year when your fiscal year ends (November 2023). A few things that helped me when I was preparing the return: - Make sure you have all the investment transfer documentation organized. Since you mentioned investments were still being moved to the estate's EIN, you'll need to be really careful about which income belongs to the estate vs. what should be reported elsewhere. - The fiscal year election is actually pretty smart given your situation. It sounds like you made the right call there, even if settling is taking longer than expected. - Consider getting Publication 559 from the IRS - it's specifically for survivors, executors, and administrators. Much clearer than trying to figure things out from the general 1041 instructions. - Don't forget that estates get a $600 exemption, and you can deduct reasonable administration expenses. One word of caution: if this is your first estate return and there are significant assets or complex investments, you might want to at least have a consultation with a different CPA (one who specializes in estates) before filing. I know you had a bad experience, but estate returns have some unique rules that are easy to miss. Good luck with everything!

As someone who's been through estate administration, I want to emphasize a few key points that haven't been fully covered: First, yes, use the 2023 Form 1041 for your fiscal year ending November 2023. That's definitely correct. Second, since you mentioned you're "nowhere close to settling the estate by December," you'll likely need to file another 1041 for the following fiscal year (November 2023 to November 2024). Estates can remain open for years, and you'll need to file annual returns until everything is distributed and the estate is closed. Third, be very careful about estimated tax payments. If the estate owes more than $1,000 in tax, you may need to make quarterly estimated payments for the current fiscal year. This caught me off guard with my mother's estate. Finally, regarding your investment transfers - make sure you understand the difference between estate income and distributable net income (DNI). If you distribute assets to beneficiaries during the fiscal year, there are specific rules about how much taxable income flows through to them versus staying with the estate. The learning curve is steep, but it's absolutely doable if you're methodical about it. Keep detailed records of everything - dates, amounts, purposes. You'll thank yourself later if the IRS has questions.