Where do I report taxes paid with automatic extension when filing trust's 1041 final return?

Thanks so much for the quick response! So just to be clear, even though this wasn't technically an "estimated tax payment" but rather a payment with an extension, I still put it on line 24a? I was looking for something that specifically mentioned extension payments. Also, do I need to attach any documentation showing I made this payment, or is just entering the amount sufficient?

Yes, you'll include the extension payment on line 24a along with any estimated tax payments. The IRS treats extension payments as a type of estimated payment for reporting purposes on the final return. No additional documentation is needed for the payment you already made. The IRS has a record of it in their system. Just enter the correct amount on line 24a. If there's any discrepancy, they'll contact you, but that rarely happens as long as you enter the amount accurately.

How does it handle more complex trust scenarios? My family trust has income from multiple rental properties and some investment accounts. Would it be able to sort through all that or is it mainly for simpler situations?

I'm a bit skeptical about AI tools for tax preparation, especially for something as particular as trust returns. Does it actually give advice on the tax treatment of different types of trust distributions? Can it distinguish between complex and simple trusts for tax purposes?

It handles rental properties quite well! I had two properties in my grandmother's trust, and it correctly categorized all the income and expenses from the bank statements and property management reports. It even flagged some deductible expenses I would have missed. For complex vs. simple trusts, it absolutely can distinguish between them and applies the correct tax treatment. It analyzes the trust document to determine the type, then applies the appropriate rules for distributions. It even helped me understand which distributions were carrying out DNI and which weren't, which saved a significant amount in taxes.

Wait, I don't understand - how does this actually work? The IRS phone system is notoriously terrible. How can some third-party service magically get you through when millions of people can't get past the hold music?

Sounds like a scam to me. I doubt any service could actually improve your chances of reaching the IRS. They probably just keep you on hold themselves and charge you for the privilege. Has anyone verified this isn't just taking advantage of desperate taxpayers?

It works by using their system that navigates the IRS phone tree and waits on hold for you. Once they reach a human agent, you get a call connecting you directly. They aren't a middleman during your actual conversation with the IRS - they just handle the frustrating waiting part. They don't improve your "chances" of reaching the IRS - they actually do reach them, every time. That's their entire business model. The technology essentially waits on hold so you don't have to, and they only succeed if they actually connect you with an agent. I was skeptical too until I tried it and was speaking with an actual IRS representative about our trust's extension payment within minutes.

Thanks for mentioning this! Yes, this is actually the final distribution year for the trust. So I need to check that box. For the K-1s, does the software automatically generate those, or do I need to create them separately? And will the refund go to the trust account (which I'm planning to close) or can I direct it somewhere else?

Most tax software will generate the K-1s automatically based on the information you enter in the 1041. You'll just need to make sure the distribution amounts to each beneficiary are entered correctly. For the refund, since this is the final return, you can have it sent to a different address by completing Form 8822-B to notify the IRS of an address change for the trust. Alternatively, you can request direct deposit to a specific bank account on the 1041 itself. Just make sure not to close the trust bank account until after you've received the refund if you're planning to use that account.

This happened to me too! Our accountant made a typo on the EIN and it was a nightmare. The IRS treated it as if we never filed an extension or made a payment. We ended up having to provide proof of payment and it delayed the whole process by like 4 months.