Start studying Digestive System (anatomy of alimentary canal). Learn vocabulary, terms, and more with flashcards, games, and other study tools.
Estimated Income Tax. Trusts that earn income must pay estimated tax payments during the year. These payments are due on April 15, June 15, September 15 and January 15 for calendar year trusts. Calculate the estimated payments on IRS Form 1041ES. The instructions for this form provide complete detail about how to pay this tax.
Since interest is taxable, the trust must pay the income tax on it each year. This is why the trustee must prepare a tax return for the trust on Form 1041. The same concept applies to a decedent's estate that isn't immediately distributed to heirs at the time of death.