1041-QFT Ohjeita
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2023
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- 1041-QFT - USA:n tulovero takaisin pätevälle hautausmaalle
Department of the Treasury
Internal Revenue Service
2023 Instructions for Form
1041-QFT
U.S. Income Tax Return for Qualified Funeral Trusts
The only beneficiaries of the trust are individuals for whom
•
General Instructions
such services or property are to be provided at their death
under the contracts described above.
Section references are to the Internal Revenue Code.
The only contributions to the trust are contributions by or
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Future Developments
for such beneficiaries’ benefit.
The trustee makes or previously had made the election to
For the latest information about developments related to
Form 1041-QFT and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
•
treat the trust as a QFT.
The trust would’ve been treated as owned by the
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purchasers of the contracts under the grantor trust provisions
of the Code if the QFT election hadn’t been made.
What’s New
Tax rate schedule for trusts and estates. The tax rates
have changed for 2023. See Line 12—Tax, later.
Note. A trust that isn’t treated as owned by the purchaser
solely because of the death of an individual will be treated as
meeting this requirement during the 60-day period beginning
on the date of that individual’s death.
Reminders
Global intangible low-taxed income (GILTI). The Tax Cuts
and Jobs Act of 2017 (TCJA) (P.L. 115-97) requires a U.S.
shareholder of any controlled foreign corporation to include in
gross income its (GILTI). For more information, see
Line 4—Other Income, later.
Miscellaneous itemized deductions subject to the 2%
floor. Expenses that qualify as miscellaneous itemized
deductions subject to the 2% floor are no longer deductible.
Net investment income tax (NIIT). An estate or trust may
be subject to NIIT. NIIT is a 3.8% tax on the lesser of an
estate’s or trust’s undistributed net investment income or the
excess of the estate’s or trust’s adjusted gross income over a
specified threshold amount. NIIT may need to be included
when figuring estimated tax. In addition, there are special
rules when figuring NIIT for a composite return. See
Composite Return, later
If a QFT has multiple beneficiaries, each beneficiary’s
separate interest under a contract is treated as a separate
QFT for the purpose of figuring the tax and filing this return.
Each beneficiary’s share of the trust’s income is determined
in accordance with the beneficiary’s interest in the trust. A
beneficiary’s interest in a trust may be determined under any
reasonable method.
Whenever these instructions refer to a trust or QFT, it
includes such separate interests that are treated as separate
QFTs.
Making the Election
The trustee makes the election to treat a trust as a QFT by
filing Form 1041-QFT for the trust by the due date (including
extensions).
You may elect QFT status for a trust’s first eligible year or
for any subsequent year. Once made, the election can’t be
revoked without the consent of the IRS.
Purpose of Form
The trustee of a trust that has elected to be taxed as a
qualified funeral trust (QFT) files Form 1041-QFT to report
the income, deductions, gains, losses, and tax liability of the
QFT. The trustee can use the form to report information for a
single QFT or for multiple QFTs having the same trustee. If
filing Form 1041-QFT for multiple QFTs, please see the rules
Composite Return
A trustee may file a single, composite Form 1041-QFT for
some or all QFTs of which they are the trustee, including
QFTs that had a short tax year.
You must attach a statement to a composite Form
1041-QFT that includes the following information for each
QFT (or separate interest treated as a separate QFT).
Pre-need funeral trusts that don’t qualify as QFTs should
see the Instructions for Form 1041, U.S. Income Tax Return
for Estates and Trusts, for their filing requirements.
The name of the owner or the beneficiary. If you list the
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name of the owner and that trust has more than one
beneficiary, you must separate the trust into shares held by
the separate beneficiaries.
Qualified Funeral Trust (QFT)
A QFT is a domestic trust that meets all of the following
requirements.
The type and gross amount of each type of income earned
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by the QFT for the tax year. For capital gains, identify
separately the amount of (a) net short-term capital gain, (b)
net long-term capital gain, (c) 28% rate gain, and (d)
unrecaptured section 1250 gain.
The trust arose as a result of a contract with a person
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engaged in the trade or business of providing funeral or burial
services or property to provide such services.
The type and amount of each deduction and credit
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The sole purpose of the trust is to hold, invest, and reinvest
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allocable to the QFT.
funds in the trust and to use those funds solely to pay for
funeral or burial services or property to provide such services
for the benefit of the beneficiaries of the trust.
The tax and payments made for each QFT.
•
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The termination date for each QFT that was terminated
during the year.
Jan 26, 2024
Cat. No. 94082U
Note. When calculating NIIT for a composite return, treat
each beneficiary’s interest in each QFT (within the meaning
of section 685) as a separate trust.
after September 27, 2010. For information, see Form W-12,
IRS Paid Preparer Tax Identification Number (PTIN)
Application and Renewal.
When To File
Paid Preparer Authorization
File Form 1041-QFT by April 15, 2024. The due date for a
composite return is also April 15, 2024, even if the return
includes QFTs that terminated during the year. If you live in
Maine or Massachusetts, you have until April 17, 2024,
because the Patriot’s Day and Emancipation Day holidays. If
you are filing for a short year, file Form 1041-QFT by the 15th
day of the 4th month following the close of the short year. If
the due date falls on a Saturday, Sunday, or legal holiday, file
by the next business day.
If the trustee wants to allow the IRS to discuss the QFT’s
2023 tax return with the paid preparer who signed it, check
the “Yes” box in the signature area of the return. This
authorization applies only to the individual whose signature
appears in the Paid Preparer Use Only section of the QFT’s
return. It doesn’t apply to the firm, if any, shown in that
section.
If the “Yes” box is checked, the trustee is authorizing the
IRS to call the paid preparer to answer any questions that
may arise during the processing of the QFT’s return. The
trustee is also authorizing the paid preparer to:
Private Delivery Services (PDSs)
You can use certain PDSs designated by the IRS to meet the
“timely mailing as timely filing” rule for tax returns. Go to
www.irs.gov/PDS for the current list of designated services.
Give the IRS any information that’s missing from the QFT’s
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return;
Call the IRS for information about the processing of the
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The PDSs can tell you how to get written proof of the
mailing date.
QFT’s return or the status of its refund or payment(s); and
Respond to certain IRS notices that the trustee has shared
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with the preparer about math errors, offsets, and return
preparation.
For the IRS mailing address to use if you’re using a PDS,
The trustee isn’t authorizing the paid preparer to receive
any refund check, bind the QFT to anything (including any
additional tax liability), or otherwise represent the QFT before
the IRS.
PDSs can’t deliver items to P.O. boxes. You must use
the U.S. Postal Service to mail any item to an IRS
!
CAUTION
P.O. box address.
The authorization will automatically end no later than the
due date (without regard to extensions) for filing the QFT’s
2024 tax return. If the trustee wants to expand the paid
preparer’s authorization or revoke the authorization before it
ends, see Pub. 947, Practice Before the IRS and Power of
Attorney.
Extension of Time To File
Use Form 7004, Application for Automatic Extension of Time
To File Certain Business Income Tax, Information, and Other
Returns, to get an extension of time to file. An extension of
time to file a return doesn’t extend the time to pay the tax.
Accounting Methods
Where To File
Figure taxable income using the method of accounting
regularly used in keeping the QFT’s books and records.
Generally, permissible methods include the cash method, the
accrual method, or any other method authorized by the
Internal Revenue Code. In all cases, the method used must
clearly reflect income.
File Form 1041-QFT at the following address.
Department of Treasury
Internal Revenue Service
Kansas City, MO 64999
Who Must Sign
Trustee
Generally, the QFT may change its accounting method (for
income as a whole or for any material item) only by getting
consent on Form 3115, Application for Change in Accounting
Method. For more information, see Pub. 538, Accounting
Periods and Methods
The trustee, or an authorized representative, must sign Form
1041-QFT.
Accounting Period
Paid Preparer
All QFTs must use a calendar year as their accounting
period.
Generally, anyone who is paid to prepare a tax return must
sign the return and fill in the other blanks in the Paid Preparer
Use Only section of the return. The person required to sign
the return must:
Rounding Off to Whole Dollars
You may round off cents to whole dollars on the estate's or
trust's return and schedules. If you do round to whole dollars,
you must round all amounts. To round, drop amounts under
50 cents and increase amounts from 50 to 99 cents to the
next dollar. For example, $1.39 becomes $1 and $2.50
becomes $3.
Complete the required preparer information,
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Sign it in the space provided for the preparer’s signature,
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and
Give you a copy of the return in addition to the copy to be
•
filed with the IRS.
Anyone who is paid to prepare the trust’s return must enter
their preparer tax identification (PTIN) in the Paid Preparer
Use Only section. The PTIN entered must have been issued
If you have to add two or more amounts to figure the
amount to enter on a line, include cents when adding the
amounts and round off only the total.
2
Instructions for Form 1041-QFT (2023)
If you are entering amounts that include cents, make sure
to include the decimal point. There is no cents column on the
form.
Final Form 1041
If you have an existing EIN(s) that you previously used for
filing Form 1041 and that you won’t use again (that is, for
QFTs included in a composite return), you should file Form
1041 and check the Final return box.
Estimated Tax
Generally, a QFT must pay estimated income tax for 2024 if it
expects to owe, after subtracting withholding and credits, at
least $1,000 in tax. Estimated tax liability is figured for the
individual QFT, and not for a composite return taken as a
whole. For details and exceptions, see Form 1041-ES,
Estimated Income Tax for Estates and Trusts.
Specific Instructions
Part I—General Information
Line 1—Name of Trust
Copy the exact name from the Form SS-4, Application for
Employer Identification Number, used to apply for the EIN
you are using to file Form 1041-QFT.
Interest and Penalties
Interest
Interest is charged on taxes not paid by the due date, even if
an extension of time to file is granted. Interest is also charged
on the failure-to-pay penalty, the failure-to-file penalty, the
accuracy-related penalty, and the fraud penalty. The interest
charge is figured at a rate determined under section 6621.
Line 2—Employer Identification Number (EIN)
If the QFT isn’t filing as part of a composite return, use the
EIN of the QFT. If the QFT doesn’t have an EIN, it must apply
for one. Every trustee that elects to file a composite return
must apply for an EIN to be used only for filing Form
1041-QFT. A trustee must use a separate EIN for every Form
1041-QFT it files.
Late Filing of Return
Section 6651 provides for penalties for late filing unless there
is a reasonable cause for the delay. The law also provides for
penalties for willful attempts to evade payment of tax. The
penalty won't be imposed if you can show that the failure to
file on time is due to reasonable cause and not due to willful
neglect.
A QFT without an EIN can apply for one in the following
ways.
Online—A QFT can receive an EIN by Internet and use it
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immediately to file a return. Go to the IRS website at
By mail or fax—Send in a completed Form SS-4. Form
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If you receive a notice about penalty and interest after you
file this return, send us an explanation, and we will determine
if you meet reasonable-cause criteria. Don’t attach an
explanation when you file Form 1041-QFT. For more
information about penalties for late filing, see Late Filing of
Return in the Instructions for Form 1041.
If the QFT hasn’t received it’s EIN by the time the return is
due, write “Applied for” in the space for the EIN.
Line 3—Address
Include the suite, room, or other unit number after the street
address. If the post office doesn’t deliver mail to the street
address and you have a P.O. box, show the box number
instead of the street address.
Late Payment of Tax
Generally, the penalty for not paying the tax when due is 1/2 of
1% of the unpaid amount for each month or part of a month
that it remains unpaid. The maximum penalty is 25% of the
unpaid amount. The penalty applies to any unpaid tax on the
return. Any penalty is in addition to interest charges on late
payments.
If you want a third party (such as an accountant or an
attorney) to receive mail for the QFT, enter “C/O” on the street
address line, followed by the third party’s name and street
address or P.O. box.
Underpaid Estimate Tax
If you change your address (including a new “in care of”
name and address) after filing Form 1041-QFT, use Form
8822-B, Change of Address or Responsible Party —
Business, to notify the IRS.
If the trustee underpaid estimated tax, use Form 2210,
Underpayment of Estimated Tax by Individuals, Estates, and
Trusts, to figure any penalty.
If you include interest or any of these penalties with
Line 4—Number of QFTs
your payment, identify and enter these amounts in
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CAUTION
the bottom margin of Form 1041-QFT. Don’t include
If this is a composite return, enter the total number of QFTs
(including separate interests treated as separate QFTs)
included on the return.
the interest or penalty amount in the balance of tax due on
line 19.
Part II—Tax Computation
Other Penalties
Composite Return
Other penalties can be imposed for negligence, substantial
understatement of tax, and fraud. See Pub. 17, Your Federal
Income Tax, for details on these penalties.
If this is a composite return, enter in Part II the totals
for all the QFTs included on the return.
!
CAUTION
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Instructions for Form 1041-QFT (2023)
Income
Line 9—Other Deductions
Attach your own statement, listing by type and amount all
allowable deductions.
Line 2a—Total Ordinary Dividends
QFTs aren’t allowed a deduction for a personal
Report all ordinary dividends received during the tax year.
exemption.
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CAUTION
Report capital gain distributions on Schedule D (Form
1041), line 13.
Line 12—Tax
Line 2b—Qualified Dividends
Tax rate schedule. Unless the instructions that follow for
Schedule D or composite return apply, figure the tax using
the Tax Rate Schedule below. Enter the tax on line 12.
Enter on line 2b the amount reported on line 2a that is a
qualified dividend. A qualified dividend is a dividend received
during the tax year from (a) a domestic corporation, or (b) a
qualified foreign corporation. A qualified dividend doesn’t
include any dividend from a corporation if the corporation is
(or was) exempt from income tax under section 501 or 521 for
the tax year during which the distribution was made, any
amount allowed as a deduction under section 591, or any
dividend described under section 404(k).
Exception. Some dividends may be reported to the trust as
qualified dividends but aren’t qualified dividends. See the
instructions for line 2b(2) in the 2023 Instructions for Form
1041 for more information.
2023 Tax Rate Schedule
If taxable
income
But
not
over
Of the
is Over—
amount
over—
Its tax is:
10%
$290 + 24%
2,126 + 35%
3,491 + 37%
$0
2,900
10,550
14,450
$2,900
10,550
14,450
- - - -
$0
2,900
10,550
14,450
Schdeule D. If the QFT had both a net capital gain and any
taxable income, or any qualified dividends and any taxable
income, complete Part V of Schedule D (Form 1041), and
then enter the tax from line 45 of Schedule D on line 12.
Composite return. If this is a composite return, check this
box and enter on line 12 the total of the tax figured separately
for each QFT using either the 2023 Tax Rate Schedule above
or Schedule D (Form 1041).
Line 4—Other Income
Enter all other types of income not included on line 1a, 2a, or
3. List the type and amount on an attached statement if the
QFT(s) has more than one item.
If you are reporting GILTI, include it on the attached
statement. You must also complete and attach Form 8992,
Global Intangible Low-Taxed Income (GILTI).
Line 13—Credits
Deductions
Specify the type of credit being claimed and attach any
required credit forms. If you are claiming more than one type
of credit, attach a statement listing the type and amount of
each credit claimed. See the Instructions for Form 1041 for
details on the credits that may be claimed.
Allocation of Deductions for Tax-Exempt Income
Generally, no deduction that would otherwise be allowable is
allowed for any expense that is allocable to tax-exempt
income, such as interest on state or local bonds.
Exception. State income taxes and business expenses that
Line 15—Net Investment Income Tax
are allocable to tax-exempt interest are deductible.
For tax years beginning on or after January 1, 2013, a QFT
may be liable for the NIIT enacted under section 1411. To
determine if this tax applies, see Form 8960, Net Investment
Income Tax—Individuals, Estates, and Trusts, and its
instructions.
Expenses that are directly allocable to tax-exempt income
are allocable only to tax-exempt income. A reasonable
proportion of expenses indirectly allocable to both
tax-exempt income and other income must be allocated to
each class of income.
Line 16—Total Tax
Limitations on Deductions
If the QFT owes any additional taxes (for example, alternative
minimum tax, recapture taxes, etc.), include these taxes on
line 16. To the left of the entry space, write the type and
amount of the tax. Also attach to Form 1041-QFT any forms
required to figure these taxes (for example, Schedule I (Form
1041)). See the Instructions for Form 1041 for more details
on additional taxes that may apply.
Generally, the amount a QFT has “at-risk” limits the loss it can
deduct in any tax year. Also, section 469 and its regulations
generally limit losses from passive activities to the amount of
income derived from all passive activities. Similarly, credits
from passive activities are generally limited to the tax
attributable to such activities.
For details on these and other limitations on deductions,
Line 17—Payments
see Deductions in the Instructions for Form 1041.
Include on line 17 any of the following.
4
Instructions for Form 1041-QFT (2023)
Estimated tax payments made for 2023.
You aren’t required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books
or records relating to a form or its instructions must be
retained as long as their contents may become material in the
administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
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•
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Tax paid with a request for an extension of time to file.
Federal income tax withheld (for example, backup
withholding).
Credit for tax paid on undistributed capital gains. Also
•
attach Copy B of Form 2439, Notice to Shareholder of
Undistributed Long-Term Capital Gains.
Line 18—Elective Payment Election
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
average time is:
Enter any elective payment election amount from Form 3800,
Part III, line 6, column (i). See the instructions for Form 3800.
Recordkeeping
Learning about the law or the form .
Preparing the form . .
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10 hr., 16 min.
2 hr., 40 min.
6 hr., 40 min.
1 hr., 4 min.
Line 19—Tax Due
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Copying, assembling, and sending the form to IRS
You must pay the tax in full when the return is filed. Make the
check or money order payable to “United States Treasury.”
Write the EIN from line 2 of the form and “2023 Form
1041-QFT” on the payment. Enclose, but don’t attach, the
payment with Form 1041-QFT.
If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. You can send us
your comments to Internal Revenue Service, Tax Forms and
Publications, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Don’t send the tax form to this
address. Instead, see Where to File, earlier.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us this
information. We need it to ensure that you are complying with
these laws and to allow us to figure and collect the right
amount of tax.
5
Instructions for Form 1041-QFT (2023)