The first year can cover any period of 12 months or less that ends on the last day of a month. A tax year is chosen when the first fiduciary return is filed. A trust treated entirely as a grantor-type trust may use a fiscal year. The 15th day of the 4th month following the close of the tax year. Fiscal year beginning in 2000, and ending in 2001.
Beneficiaries report income in the tax year in which the trust or estate year ends.
The estate files a 1999 Form 1041 for the first year. Estimated payments are only required for tax years ending two or more years after the decedent s death. Estimated payments are not required if the entity had no tax liability for the full 12-month 1999 tax year. Safe harbor rules similar to those for individuals apply to estates and trusts. File Form 1041-T by the 65th day after the close of the tax year.