is it necessary to file IRS form 4810 for a simple family trust?
Saturday, January 17th, 2009 at
5:26 am
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Al F asked:
a trust attorney is holding 10% of our family trust until the IRS responds to IRS form 4810 which can take 18 months, is this form nessesary because the final yrs taxes have been processed and the IRS saiys the file is closed.
a trust attorney is holding 10% of our family trust until the IRS responds to IRS form 4810 which can take 18 months, is this form nessesary because the final yrs taxes have been processed and the IRS saiys the file is closed.
Who is the trustee?
Without the 4810, the trust is eligible to be audited for 3-6 years. If audited and the IRS decides the taxes were underpaid on the 1041, the trustee is liable for any and all amounts.
With the form 4810, the time period is shortened to 18 months. Your trustee is uncomfortable with the size of the trust or (I hope this is less likely) some tax position taken on the 1041.
The attorney has probably learned over the years that if the money is distributed, no one will pay the trustee back if a tax bill comes in.
It may not have been necessary. Verify by calling 800-829-1040 IRS Help Line. They will answer every question..