Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 89 - Fiduciary Income Tax › Rule 701-89.4 - Fiduciary Returns and Payment of the Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Form of
				return.
The form of the fiduciary return shall be prescribed by the
				director. It shall conform as nearly as possible to the federal fiduciary
				return.
(2)
Required
				federal returns and schedules.
Nonresident estates with Iowa taxable
				income and trusts with situs outside Iowa with Iowa taxable income must submit
				a copy of the federal fiduciary return with the Iowa return. Estates of Iowa
				decedents and trusts with a situs in Iowa must submit copies of the federal
				schedules that substantiate gross income, deductions and ordinary and throwback
				distributions to beneficiaries with the Iowa return.
(3)
Same form for nonresident estates
				and foreign situs trusts.
Nonresident estates and foreign situs trusts
				shall use the same form for reporting Iowa taxable income as prescribed for
				resident estates and trusts with a situs in Iowa.
(4)
Accounting period-tax
				year.
The initial fiduciary return may reflect either a calendar or
				fiscal year accounting period, without the department's prior approval. If a
				fiscal year is elected, it may end on the last day of any month, except
				December, but in no case shall the fiscal year adopted be for a period longer
				than the last day of the month preceding the decedent's death or the month the
				trust was created. The accounting period for the purpose of the tax imposed by
				Iowa Code section
				422.6
				must be the same accounting period that is adopted for federal income tax
				purposes. This limitation is equally applicable to estates of resident and
				nonresident decedents and trusts with a situs within and without Iowa. If the
				taxpayer has not adopted a taxable year prior to the time the return is due to
				be filed and the tax paid, the taxable year is a calendar year until
				authorization is granted to change to a fiscal year. See 26 U.S.C. Sections 441
				to 443, federal regulations Sections 1.441 - 1(g)(3) and 1.442.2.
The permissible taxable years are illustrated by the
				  following examples:
EXAMPLE 1. Decedent died July 4, 1990. The taxable year for
				  the estate commences the day after the decedent's death (July 5, 1990) and will
				  end December 31, 1990, if a calendar year is adopted as the taxable year. If a
				  fiscal year is adopted, it can end on July 31, 1990, or the last day of any
				  future month (except December 31, 1990), but no later than June 30, 1991,
				  subject to the condition that it is selected prior to the time the return and
				  payment are originally due.
EXAMPLE 2. Grantor creates an irrevocable trust on July 27,
				  1989. On July 1, 1990, the trustee filed the initial fiduciary return of
				  income, adopting at that time a taxable year ending November 30, 1989. Since
				  the return was due March 17, 1990 (March 15 was a Saturday) for federal income
				  tax purposes and March 31, 1990, for Iowa income tax purposes, it is delinquent
				  and a fiscal year accounting period is disallowed and the trust taxable year is
				  the calendar year.
(5)
Short year returns.
If an estate or trust is in existence only
				a portion of the taxable year, a return must be filed for the partial year in
				accordance with subrule 89.4(6).
(6)
Minimum filing
				requirements.
a.
General
				rule.
A fiduciary return of income must be filed if the gross income
				of the estate or trust for the taxable year is $600 or more, regardless of any
				tax liability.
b.
Exception
				to the general rule.
A final fiduciary return of income must be filed
				for the taxable year in which an estate or trust is closed, regardless of the
				amount of gross income, if an income tax certificate of acquittance is
				requested. The final fiduciary return of income constitutes an application for
				an income tax certificate of acquittance pursuant to Iowa Code sections
				422.27,
				633.477 and
				633.479. For a
				certificate of acquittance to be received, the appropriate box on the final
				fiduciary return must be checked to request the
				certificate.