The IRS Says You Didn’t File Your PIF or CRT Form 5227…But You Did!

We are getting accustomed to waiting longer for things these days: Waiting for baggage to come at the airport. Waiting for food to be delivered. Waiting for any device that uses a microchip. Many of the delays are due to staffing shortages. The IRS is no different. If you have received a paper notification that you didn’t file your 2020 PIF or CRT Form 5227, you are not alone. That’s because the IRS automated notice system is working just fine. However, due to staffing shortages, the IRS is delayed in opening these and other hard copy returns. So while the automatic notice machine churns on, the real live humans are still sitting and opening envelopes trying to catch up.

It’s Tax Season, and Timing Is Everything This Year

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.

Why Are the K-1s Late Again This Year?  Why Are They Late Every Year??

It happens every year – your gift annuity donors received their 1099-R forms at the end of January, and everyone was happy. But once the calendar turned to February, the calls started coming in from your charitable remainder trust donors; they are looking for their K-1 forms, which report the income they received from their trusts. If you have a pooled income fund, you’re getting calls from those donors too, because they are also entitled to a K-1 form. And once the calendar turns into March, the calls get uglier. Everyone expected to receive their tax forms around the end of January, because that’s when all tax forms are due, right?