CT-1041 booklet, Connecticut Income Tax Return for Trusts and ...

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is greater. If a request for an extension of time has beengranted, the trust or estate can avoid a penalty for failure to paythe full amount due by the original due date if the fiduciary:• Pays at least 90% of the income tax shown to be due on thereturn on or before the original due date of the return; and• Pays the balance due with the return on or before theextended due date.The Commissioner of Revenue Services may impose a $50penalty for the late filing of any return or report required bylaw to be filed even if no tax is due.Penalty for Failure to FileIf the fiduciary does not file the return and DRS files a returnfor the trust or estate, the penalty for failure to file is 10% of thebalance due or $50, whichever is greater. If the fiduciary wasrequired to file an amended Form CT-1041 and failed to do so,a penalty may be imposed. See Amended Return on Page 26.Waiver of PenaltyYou may request a waiver of penalty after you have filed thereturn and paid the tax and interest due. The penalty may bewaived if the failure to file or pay tax on time was due to areasonable cause and was not intentional or due to neglect.Interest cannot be waived.To apply for a waiver of penalty online, visit the DRS websiteat www.ct.gov/TSC, log into your account, and selectAccount Detail.If you submit your request in writing, you must include:• A clear and complete written explanation;• The name of the trust or estate and FEIN or SSN, if applicable;• The taxable filing period;• The name of the original form filed or billing noticereceived; and• Documentation supporting your explanation.Attach your request to the front of the tax return or mailseparately with a copy of the tax return to:Department of Revenue ServicesPenalty Waiver UnitPO Box 5089Hartford CT 06102-5089RecordkeepingKeep a copy of the tax return, worksheets you used, andrecords of all items appearing on the return (such as W-2and 1099 forms) until the statute of limitations expires for thatreturn. Usually, this is three years from the date the return wasdue or filed, whichever is later. You may need this informationto prepare future returns or to file amended returns.Copies of ReturnsCopies of previously-filed Connecticut income tax returns maybe requested from DRS by completing LGL-002, Requestfor Disclosure of Tax Return or Tax Return Information.Requests are normally processed in three weeks.Order in Which to Complete Form CT-1041 andSchedulesFor trusts or estates that do not meet the Quick-FileRequirements: See Form CT-1041 Quick-File Requirementson Page 13 for verification.Complete Form CT-1041 and the schedules for resident andnonresident estates, full-year resident and nonresident trusts,and part-year resident trusts in the following order.1. Resident trust or estate with resident beneficiaries:• Schedule A;• Schedule CT-1041B, Part 1;• Schedule CT-1041C;• The front of Form CT-1041; and• Form CT-1041 Schedule I, Parts 1 and 2, as necessary.2. Resident estate or full-year resident testamentarytrust with any nonresident beneficiaries or a full-yearresident inter vivos trust with nonresident, contingentbeneficiaries but without nonresident, noncontingentbeneficiaries:• Schedule A;• Schedule CT-1041B, Part 1;• Schedule CT-1041FA, Parts 3 and 2;• Schedule CT-1041C;• The front of Form CT-1041; and• Form CT-1041 Schedule I, Parts 1 and 2, as necessary.3. Full-year resident inter vivos trust with nonresident,noncontingent beneficiaries:• Schedule A;• Schedule CT-1041B, Parts 1 and 2;• Schedule CT-1041FA, Parts 3 and 2;• Schedule CT-1041C;• The front of Form CT-1041; and• Form CT-1041 Schedule I, Parts 1 and 2, as necessary.4. Nonresident estate, full-year nonresident trust, orpart-year resident inter vivos trust without nonresident,noncontingent beneficiaries:• Schedule A;• Schedule CT-1041B, Part 1;• Schedule CT-1041FA, Parts 3, 2, and 1;• The front of Form CT-1041; and• Form CT-1041 Schedule I, Parts 1 and 2, as necessary.5. Part-year resident inter vivos trust with nonresident,noncontingent beneficiaries:• Schedule A;• Schedule CT-1041B, Parts 1 and 2;• Schedule CT-1041FA‚ Parts 3, 2, and 1;• The front of Form CT-1041; and• Form CT-1041 Schedule I, Parts 1 and 2, as necessary.Form CT-8801, Credit for Prior Year’s Connecticut MinimumTax for Individuals‚ Trusts‚ and Estates‚ must be completedas necessary for all types of trusts and estates that expect acredit or credit carryforward of alternative minimum tax paidin a prior year.Page 12
Instructions for Form CT-1041Filing YearAll information on Form CT-1041, Connecticut Income TaxReturn for Trusts and Estates, should be for the calendar yearJanuary 1 through December 31, 2009, or any fiscal yearbeginning in 2009. If filing for a fiscal year or short taxableyear, enter the month and day the taxable year began and themonth, day, and year it ended at the top of Page 1.Federal Employer Identification Number(FEIN)The Department of Revenue Services (DRS no longerprocesses income tax returns for trusts and estates without anFEIN. You can no longer write “applied for” in the FEIN field.You must have applied for and been issued an FEIN beforeyou file a return. However, if you have not received the FEINby April 15 for the calendar year filers or for noncalendar yearfilers by the fifteenth day of the fourth month following theclose of the taxable year, file the return without the FEIN andpay the tax due. DRS will contact you upon receipt of thereturn and will hold the return until you receive the FEIN andforward the information to DRS. For information on how toobtain an FEIN, contact the IRS. See the back cover.Name, FEIN, and AddressEnter the name and FEIN of the trust or estate and the name andaddress of the fiduciary in the spaces on Page 1 of the return.Enter the name and FEIN of the trust or estate in the spacesprovided on all applicable schedules.Type of ReturnCheck the applicable box if:• The trust or estate has been terminated and this is a finalreturn; or• This is an amended return. Attach a statement explainingthe reason for filing an amended return.Resident StatusEnter the date the trust or estate was created and the datethe trust or estate was terminated, if applicable, in the spaceprovided.Check only one applicable box to identify the residency statusof the trust or estate.The trust would be a part-year resident trust if:• It was revocable when property was transferred to it buthas become irrevocable subsequently; and• The residency status of the grantor, whether as a residentor nonresident individual, during the taxable year thetrust became irrevocable differs from the residency statusof the grantor during the taxable year that property wastransferred to the trust.Type of EntityCheck the applicable box to identify the type of trust or estate.Also check the appropriate box to indicate if the trust wascreated by the will of the decedent or is an inter vivos trust.Rounding Off to Whole DollarsYou must round off cents to the nearest whole dollar on yourreturn and schedules. If you do not round, DRS will disregardthe cents.Round down to the next lowest dollar all amounts that include1 through 49 cents. Round up to the next highest dollar allamounts that include 50 through 99 cents. However, if youneed to add two or more amounts to compute the amount toenter on a line, include cents and round off only the total.Example: Add two amounts ($1.29 + $3.21) to compute thetotal ($4.50) to enter on a line. $4.50 is rounded to $5.00 andentered on the line.Negative NumbersWhen entering a negative number, you must precede thenumber with a minus sign or bracket the amount.Form CT-1041 Quick-File RequirementsThe fiduciary of a resident estate or full-year resident trust mayQuick-File Form CT-1041 if the resident estate or full-yearresident trust has no:• Nonresident beneficiaries;• Schedule A‚ Connecticut fiduciary adjustments;• Connecticut alternative minimum tax;• Adjusted net Connecticut minimum tax credit; and• Federal election to be treated as an Electing Small BusinessTrust (ESBT).A trustee that files one aggregate federal Form 1041-QFT,U.S. Income Tax Return for Qualified Funeral Trusts,for all qualified funeral trusts (QFT) may Quick-File oneaggregate Form CT-1041 for all Connecticut resident QFTsas long as all grantors and all beneficiaries of every QFT areConnecticut residents.Form CT-1041 Quick-File Line InstructionsLine 1 - Connecticut Taxable IncomeEnter federal taxable income of a trust or estate from federalForm 1041, Line 22. If you are the trustee of the bankruptcyestate of a debtor who is an individual in a case underChapter 7 or Chapter 11 of the Bankruptcy Code, you may,in computing the estate’s federal taxable income, deduct theexemption amount under I.R.C. §151(d)(1), but may not deductthe personal exemption under I.R.C. §642(b).Page 13
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