Instructions for Form 1041 and Schedules A, B, D, G, I, J, and K-1 (2006)

Instructions for Form 1041 and Schedules A, B, D, G, I, J, and K-1 - Introductory Material

This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

What's New

For tax years beginning in 2006, the requirement to file a return for a bankruptcy estate applies only if gross income is at least $8,450.
For 2006, qualified disability trusts can claim an exemption of up to $3,300. A trust with modified adjusted gross income above $150,500 loses part of the exemption deduction. The amount by which this deduction is reduced for 2006 is only 2/3 of the amount of the reduction that would otherwise have applied. See the instructions for line 20 on page 19 for more details.
If the entire trust is a widely held fixed investment trust (WHFIT) that must follow the WHFIT reporting rules under Regulations section 1.671-5 for 2007, check the final return box in item F, on page 1 of the 2006 Form 1041.
Estates or trusts that paid the federal telephone excise tax on long distance or bundled service may be able to request a credit. See the instructions for line 24f on page 20.

Photographs of Missing Children

The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Unresolved Tax Issues

If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents the estate's or trust's interests and concerns within the IRS by protecting its rights and resolving problems that have not been fixed through normal channels.

While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that the estate's or trust's case is given a complete and impartial review.

The estate's or trust's assigned personal advocate will listen to its point of view and will work with the estate or trust to address its concerns. The estate or trust can expect the advocate to provide:

A “fresh look” at a new or ongoing problem,
Timely acknowledgment,
The name and phone number of the individual assigned to its case,
Updates on progress,
Timeframes for action,
Speedy resolution, and
Courteous service.

When contacting the Taxpayer Advocate, you should provide the following information.

The estate's or trust's name, address, and employer identification number.
The name and telephone number of an authorized contact person and the hours he or she can be reached.
The type of tax return and year(s) involved.
A detailed description of the problem.
Previous attempts to solve the problem and the office that had been contacted.
A description of the hardship the estate or trust is facing and verifying documentation (if applicable).

The estate or trust may contact a Taxpayer Advocate by calling 1-877-777-4778 (toll-free). Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. If the estate or trust prefers, it may call, write, or fax the Taxpayer Advocate office in its area. See Pub. 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers.

How To Get Forms and Publications

Internet

You can access the IRS website 24 hours a day, 7 days a week at www.irs.gov to:

Download forms, instructions, and publications;
Order IRS products online;
Research your tax questions online;
Search publications online by topic or keyword;
View Internal Revenue Bulletins (IRBs) published in the last few years; and
Sign up to receive local and national tax news by email.

IRS Tax Products CD

You can order Publication 1796, IRS Tax Products CD, and get:

Current-year forms, instructions, and publications.
Prior-year forms, instructions, and publications.
Bonus: Historical Tax Products DVD—Ships with the final release.
Tax Map: an electronic research tool and finding aid.
Tax Law frequently asked questions (FAQs).
Tax Topics from the IRS telephone response system.
Fill-in, print, and save features for most tax forms.
Internal Revenue Bulletins.
Toll-free and email technical support.

The CD is released twice during the year. The first release will ship the beginning of January and the final release will ship the beginning of March. Buy the CD from National Technical Information Service at www.irs.gov/cdorders for $35 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll-free to buy the CD for $35 (plus a $5 handling fee).

By Phone and in Person

You can order forms and publications by calling 1-800-TAX-FORM (1-800-829-3676). You can also get most forms and publications at your local IRS office.