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.
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?
