Everyone knows by now that the IRS has extended the filing deadlines for 2020 federal income tax returns for individual taxpayers; the normal deadline of April 15 has been extended to May 17, giving all of us an extra month. But less widely known is that the federal tax filing deadline for trust tax returns has not been extended.
Ready or not, it’s year-end again, which leads us right into tax season – that “most wonderful time of the year!” Here is our quick review of the tax reporting process for life income gifts.
The trend of the ultra-low IRS discount rate introduces some risk to charitable gifts – specifically, it increases the likelihood that some gifts won’t pass tests that have been deemed important. Additionally, the current 1.0% rate could pose a particular problem if it persists after September 30 and the 1.2% look back is no longer available.
A Price Waterhouse Coopers alert reports that organizations filing Schedule R, Related Organizations and Unrelated Partnerships, will no longer have to disclose the names of split-interest trusts in Part IV of that schedule. Schedule R is part of a charity’s annual tax filing, IRS Form 990 - Return of Organization Exempt From Income Tax.
