You can use certain PDSs designated by the IRS to meet the “timely mailing as timely filing” rule for tax returns. Go to www.irs.gov/PDS for the current list of designated services.

The PDSs can tell you how to get written proof of the mailing date.

For the IRS mailing address to use if you’re using a PDS, go toIRS.gov/PDSStreetAddresses.

PDSs can’t deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address.

Use Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, to get an extension of time to file. An extension of time to file a return doesn’t extend the time to pay the tax.

The trustee, or an authorized representative, must sign Form 1041-QFT.

Generally, anyone who is paid to prepare a tax return must sign the return and fill in the other blanks in the Paid Preparer Use Only section of the return. The person required to sign the return must:

Anyone who is paid to prepare the trust’s return must enter their preparer tax identification (PTIN) in the Paid Preparer Use Only section. The PTIN entered must have been issued after September 27, 2010. For information, see Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal.

If the trustee wants to allow the IRS to discuss the QFT’s 2023 tax return with the paid preparer who signed it, check the “Yes” box in the signature area of the return. This authorization applies only to the individual whose signature appears in the Paid Preparer Use Only section of the QFT’s return. It doesn’t apply to the firm, if any, shown in that section.

If the “Yes” box is checked, the trustee is authorizing the IRS to call the paid preparer to answer any questions that may arise during the processing of the QFT’s return. The trustee is also authorizing the paid preparer to:

The trustee isn’t authorizing the paid preparer to receive any refund check, bind the QFT to anything (including any additional tax liability), or otherwise represent the QFT before the IRS.

The authorization will automatically end no later than the due date (without regard to extensions) for filing the QFT’s 2024 tax return. If the trustee wants to expand the paid preparer’s authorization or revoke the authorization before it ends, see Pub. 947, Practice Before the IRS and Power of Attorney.

Interest is charged on taxes not paid by the due date, even if an extension of time to file is granted. Interest is also charged on the failure-to-pay penalty, the failure-to-file penalty, the accuracy-related penalty, and the fraud penalty. The interest charge is figured at a rate determined under section 6621.

Section 6651 provides for penalties for late filing unless there is a reasonable cause for the delay. The law also provides for penalties for willful attempts to evade payment of tax. The penalty won't be imposed if you can show that the failure to file on time is due to reasonable cause and not due to willful neglect.

If you receive a notice about penalty and interest after you file this return, send us an explanation, and we will determine if you meet reasonable-cause criteria. Don’t attach an explanation when you file Form 1041-QFT. For more information about penalties for late filing, see Late Filing of Return in the Instructions for Form 1041.

Generally, the penalty for not paying the tax when due is ½ of 1% of the unpaid amount for each month or part of a month that it remains unpaid. The maximum penalty is 25% of the unpaid amount. The penalty applies to any unpaid tax on the return. Any penalty is in addition to interest charges on late payments.

If the trustee underpaid estimated tax, use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to figure any penalty.

If you include interest or any of these penalties with your payment, identify and enter these amounts in the bottom margin of Form 1041-QFT. Don’t include the interest or penalty amount in the balance of tax due on line 19.

Other penalties can be imposed for negligence, substantial understatement of tax, and fraud. See Pub. 17, Your Federal Income Tax, for details on these penalties.

Copy the exact name from the Form SS-4, Application for Employer Identification Number, used to apply for the EIN you are using to file Form 1041-QFT.

If the QFT isn’t filing as part of a composite return, use the EIN of the QFT. If the QFT doesn’t have an EIN, it must apply for one. Every trustee that elects to file a composite return must apply for an EIN to be used only for filing Form 1041-QFT. A trustee must use a separate EIN for every Form 1041-QFT it files.

A QFT without an EIN can apply for one in the following ways.

If the QFT hasn’t received it’s EIN by the time the return is due, write “Applied for” in the space for the EIN.

Include the suite, room, or other unit number after the street address. If the post office doesn’t deliver mail to the street address and you have a P.O. box, show the box number instead of the street address.

If you want a third party (such as an accountant or an attorney) to receive mail for the QFT, enter “C/O” on the street address line, followed by the third party’s name and street address or P.O. box.

If you change your address (including a new “in care of” name and address) after filing Form 1041-QFT, use Form 8822-B, Change of Address or Responsible Party — Business, to notify the IRS.

If this is a composite return, enter the total number of QFTs (including separate interests treated as separate QFTs) included on the return.

If this is a composite return, enter in Part II the totals for all the QFTs included on the return.

Report all ordinary dividends received during the tax year.

Report capital gain distributions on Schedule D (Form 1041), line 13.

Enter on line 2b the amount reported on line 2a that is a qualified dividend. A qualified dividend is a dividend received during the tax year from (a) a domestic corporation, or (b) a qualified foreign corporation. A qualified dividend doesn’t include any dividend from a corporation if the corporation is (or was) exempt from income tax under section 501 or 521 for the tax year during which the distribution was made, any amount allowed as a deduction under section 591, or any dividend described under section 404(k).

Enter all other types of income not included on line 1a, 2a, or 3. List the type and amount on an attached statement if the QFT(s) has more than one item.

If you are reporting GILTI, include it on the attached statement. You must also complete and attach Form 8992, Global Intangible Low-Taxed Income (GILTI).

Generally, no deduction that would otherwise be allowable is allowed for any expense that is allocable to tax-exempt income, such as interest on state or local bonds.

Expenses that are directly allocable to tax-exempt income are allocable only to tax-exempt income. A reasonable proportion of expenses indirectly allocable to both tax-exempt income and other income must be allocated to each class of income.

Generally, the amount a QFT has “at-risk” limits the loss it can deduct in any tax year. Also, section 469 and its regulations generally limit losses from passive activities to the amount of income derived from all passive activities. Similarly, credits from passive activities are generally limited to the tax attributable to such activities.

For details on these and other limitations on deductions, see Deductions in the Instructions for Form 1041.

Attach your own statement, listing by type and amount all allowable deductions.

QFTs aren’t allowed a deduction for a personal exemption.

Specify the type of credit being claimed and attach any required credit forms. If you are claiming more than one type of credit, attach a statement listing the type and amount of each credit claimed. See the Instructions for Form 1041 for details on the credits that may be claimed.

For tax years beginning on or after January 1, 2013, a QFT may be liable for the NIIT enacted under section 1411. To determine if this tax applies, see Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions.

If the QFT owes any additional taxes (for example, alternative minimum tax, recapture taxes, etc.), include these taxes on line 16. To the left of the entry space, write the type and amount of the tax. Also attach to Form 1041-QFT any forms required to figure these taxes (for example, Schedule I (Form 1041)). See the Instructions for Form 1041 for more details on additional taxes that may apply.

Include on line 17 any of the following.

Enter any elective payment election amount from Form 3800, Part III, line 6, column (i). See the instructions for Form 3800.

You must pay the tax in full when the return is filed. Make the check or money order payable to “United States Treasury.” Write the EIN from line 2 of the form and “2023 Form 1041-QFT” on the payment. Enclose, but don’t attach, the payment with Form 1041-QFT.