Example:

You’re examining plan year ending June 30, 2019, and disqualifying the plan for the plan year ending June 30, 2019, and all subsequent years. The effective date of disqualification is July 1, 2018. On November 1, 2020, you solicit Forms 1041. You should solicit Forms 1041 for the trust tax year beginning July 1, 2018 and ending December 31, 2018; the trust tax year beginning January 1, 2019 and ending December 31, 2019 and the trust tax year beginning January 1, 2020 and ending December 31, 2020.

See IRC 443(b) for the required computation of taxable income for a taxable entity that is required to file a tax return for a short tax year.

The plan sponsor can’t use its EIN to file Form 1041. The trust must obtain its own EIN. See IRM 4.70.14.2.4.2.1.2, EP - Obtaining a Trust EIN, for instructions on how to get an EIN for the trust.

Do not establish Forms 1041 on AIMS or RCCMS whether or not received from the taxpayer because EP does not have jurisdiction over Forms 1041. Apply time spent on the examination to Forms 5500 examined, or if you’re doing discrepancy adjustments, apply time to those cases.

If you receive solicited Forms 1041:

Enter on the top margin in bold face print "FORM 5500 CONVERTED TO FORM 1041 BY TE/GE:EP."

Date stamp Form 1041 to establish the date actually received.

Attach Form 3198-A with the following items completed:

List your name, ID number, phone number, POD and group number in the "Required Entries" section.

List the trust EIN, return MFT (05), year of the attached Form 1041, taxpayer's name and name control in the "Required Entries" section.

List all years for the same taxpayer that are being processed simultaneously, with the applicable statute date.

Recommend the assessment or non-assessment of failure to pay and failure to file penalties in the "Other Instructions" section. Highlight your instructions for penalties on the form.

Attach Form 13133 with the following completed:

List your name, phone number and mail code.

Check "Delinquent Return."

Check "See attached 3198-A."

If penalties should not be assessed, check "Penalties" and insert "Do not assess penalties" in the space provided.

If you receive payment, prepare Form 3244-A for each Form 1041 received. Complete these items with comments as noted:

EIN

Form number/MFT: Enter 1041/05

Tax period

Plan number

Transaction date: Enter the date the payment was received.

Taxpayer name, date, address and zip code

Transaction Data: List the entire amount received for the year under transaction code 610 (Remittance With Return) and the same amount under "Total payment."

Remarks: List the check number and the amount of the check. If the payment is to be broken out over more than one year, list each year and the amount applied to each year.

Prepared by: Enter the EP examiner’s name, group number and phone number.

Make a copy of the Form 1041, Form 3198-A, Form 13133, the check and Form 3244-A (if applicable) for the case file.

Prepare Form 3210.

List all Forms 1041 being forwarded.

If you received payment, list all check numbers and the amounts.

Mail Form 1041 packages without remittance to: IRS 1973 N. Rulon White Blvd., Mail Stop 6052 Ogden, UT 84404