Fillable Form 1041-N

What is Form 1041-N?

Form 1041-N, US Income Tax Return for Electing Alaska Native Settlement Trusts, allows an Alaska Native Settlement Trust (ANST) to apply for a special income tax treatment to the trust and its beneficiaries.

Form 1041 N is used to report an ANST’s income, gains, deductions, losses, and to pay any taxes due. This form is also used in reporting special information that applies to an ANST’s filing requirements.

You may download a PDF copy of the tax form 1041-N at the IRS website. But you may fill this out electronically on PDFRun for your convenience.

How to fill out Form 1041-N?

Enter the calendar year or beginning and ending of the short year you are applying for the 1041-N IRS form.

Page 1

Part I - General Information

The first part of IRS Form 1041-N requires the trust and the trustee’s information.

Item 1 - Name of trust

Enter the name of the trust.

Item 2 - Employer Identification Number

Enter the trust’s employer identification number.

Item 3a - Name and title of trustee

Enter the name and title of the trustee.

Item 3b - Number, street, and room or suite no.

Enter your number, street, and room or suite number.

Item 3c - City or town, state, and ZIP code

Enter your city or town, state, and ZIP code.

Item 4 - Name of sponsoring Alaska Native Corporation

Enter the name of the sponsoring Alaska Native Corporation.

Item 5 - Was Form 1041 filed in the prior year?

Mark “Yes” if Form 1041 was filed in the prior year. Otherwise, mark “No.”

Item 6

Check the appropriate boxes to determine the type of your application. You may select:

• Amended return
• Final return
• Change in fiduciary’s name
• Change in fiduciary’s address

Part II - Tax Computation

Part II requires you to enter the income, deductions, and tax payments of the trust.

Income

This section requires the trust’s income.

Item 1a

Enter your interest income.

Item 1b

Enter the trust’s tax-exempt interest. Don’t include on Item 1a.

Item 2a

Enter the total ordinary dividends.

Item 2b

Enter the qualified dividends of the ANST.

Item 3

Enter the capital gain or (loss) from Schedule D, Item 11, or the loss from Schedule D, Item 12.

Item 4

Enter other amounts of income not included on Items 1a to 3.

Item 5

Enter the total income by combining Items 1a, 2a, 3, and 4.

Deductions

This section requires you to enter the trust’s deductions.

Item 6

Enter the trust’s taxes.

Item 7

Enter the trustee fees.

Item 8

Enter the attorney, accountant, and return preparer fees.

Item 9

Enter any other deductions. Attach a schedule listing by type and the amount of all allowable deductions.

Item 10

Leave this blank.

Item 11

Enter the amount of the trust’s exemption.

Item 12

Enter the total deductions by adding Items 6 to 11.

Tax and Payments

This section requires you to enter any taxes of the trust.

Item 13

Enter your taxable income by subtracting Item 12 from Item 5.

Item 14

Enter -0- if Item 13 is a loss. Otherwise, check the applicable box to determine how you computed the tax. You may select:

• Multiply Item 13 by 10% (0.10)
• Schedule D

Enter the result of your computation here.

Item 15

Enter the type of credit being claimed. Attach a schedule listing the type and amount of each credit claimed if you are claiming more than one type of credit.

Item 16

Subtract Item 15 from Item 14, and enter the result here.

Item 17

Leave this blank.

Item 18

Enter the total tax by adding Items 16 and 17. If the ANST owes additional taxes, include them here on Item 18. Enter the type and amount of the tax to the left of the entry space. Attach any forms required to figure these taxes to Form 1041N.

Item 19

Enter the current year net 965 tax liability paid from Form 965-A, Part II, Column (k).

Item 20

Enter any tax payments for the current tax year.

Item 21

Enter the tax due. If Item 20 is smaller than the total of Items 18 and 19, enter the amount owed here.

Item 22

Enter the overpaid amount. If Item 20 is larger than the total of Items 18 and 19, enter the amount overpaid here.

Item 23

Enter the amounts to be (a) credited to next year’s estimated tax, and (b) refunded.

Part III - Other Information

Mark the appropriate boxes to determine if the following asked questions apply to you.

Item 1

Mark “Yes” if during the tax year, the trust received property or an assignment of income from an Alaska Native Corporation. Otherwise, mark “No.”

Item 2

Mark “Yes” if during the tax year, the trust received a distribution from, or it was the grantor of, or a transferor to a foreign trust. Otherwise, mark “No.”

Item 3

Mark “Yes” if at any time during the calendar year, the trust had an interest in or a signature or other authority over a financial account in a foreign country, such as a bank account, securities account, or other financial accounts. If you marked “Yes,” enter the name of the foreign country.

Otherwise, mark “No.”

Item 4

Mark “Yes” if the trust was a specified domestic entity required to file Form 8938, Statement of Specified Foreign Financial Assets, for the tax year. Otherwise, mark “No.”

Item 5

Mark the box if you are making a section 643(e)(3) election. If you marked this box, complete Schedule D below. Otherwise, leave it blank.

Sign Here

Affix your signature.

Once you affix your signature, you declare that you have examined this return along with other schedules and statements, and to the best of your knowledge and belief, everything is true, correct, and accurate. Otherwise, you will be penalized for perjury.

Date

Enter the date you signed this form.

Mark “Yes” if the IRS may discuss this return with the preparer shown below. Otherwise, mark “No.”

Page 2

Schedule D - Capital Gains and Losses

Answer schedule D only if you want to make a section 643(e)(3) election.

Part I - Short-Term Capital Gains and Losses - Assets Held One Year or Less

Item 1

Item 1 has five columns, namely:

A. Description of property

B. Date acquired

C. Date sold

D. Sales price

E. Cost or other basis

F. Gain or (loss) for the entire year

Enter the description of your properties, when they were acquired and sold, their sales price, the costs or other bases, and your gains or losses for the entire year on the appropriate boxes.

Item 2

Enter the short-term capital gain or (loss) from other forms or schedules on Column (f).

Item 3

Enter the capital loss carryover on Column (f).

Item 4

Enter the net short-term capital gain or (loss) on Column (f) by combining Items 1 through 3 in Column (f).

Part II - Long-Term Capital Gains and Losses - Assets Held More Than One Year

Item 5

Similar to Item 1, Item 5 also has five columns, namely:

A. Description of property

B. Date acquired

C. Date sold

D. Sales price

E. Cost or other basis

F. Gain or (loss) for the entire year

Enter the description of your properties, when they were acquired and sold, their sales price, the costs or other bases, and your gains or losses for the entire year on the appropriate boxes.

Item 6

Enter the long-term capital gain or (loss) from other forms or schedules on Column (f).

Item 7

Enter the capital gain distributions on Column (f).

Item 8

Enter the gain from Form 4797, Sales of Business Property, if applicable on Column (f).

Item 9

Enter the long-term capital loss carryover.

Item 10

Enter the net long-term capital gain or (loss) on Column (f) by combining Items 5 to 9 in Column (f).

Page 3

Part III - Summary of Parts I and II

Item 11

Enter the result of the combination of Items 4 and 10. If the result is a loss, go to item 12. If the result is gain, enter the gain on page 1, Part II, Item 3, and complete page 1 through Item 13.

Item 12

Enter the smaller of the loss of Item 11 or $3,000 if Item 11 is a loss. Enter this amount on page 1, Item 3, and complete page 1 through Item 13.

Skip Item 12 and complete Part IV if Item 13 on page 1 is greater than zero and Item 2b on page 1 is greater than zero, or Schedule D Items 10 and 11 are both greater than zero.

However, if the loss on Item 11 is more than $3,000 or page 1 Item 13 is less than zero, skip Part IV and complete the Capital Loss Carryover Worksheet in the instructions before completing the rest of Form 1041-N.

Otherwise, skip Part IV and complete the rest of Form 1041-N.

Part IV - Tax Computation Using Maximum Capital Gains Rates

Item 13

Enter the taxable income from page 1, Item 13.

Item 14

Enter the qualified dividends from page 1, Item 2b.

Item 15

Enter the amount from Form 4952, line 4g.

Item 16

Enter the amount from Form 4952, line 4e.

Item 17

Subtract Item 16 from Item 15, and enter the result. If the result is zero or less, enter -0-.

Item 18

Subtract Item 17 from Item 14, and enter the result. If the result is zero or less, enter -0-.

Item 19

Enter the smaller of Item 10 or Item 11.

Item 20

Enter the smaller of Item 15 or Item 16.

Item 21

Subtract Item 20 from Item 19, and enter the result. If the result is zero or less, enter -0-.

Item 22

Add Items 18 and 21, and enter the result.

Item 23

Add Item 18 from the Unrecaptured Section 1250 Gain Worksheet and Line 7 from the 28% Rate Gain Worksheet, and enter the amount here.

Item 24

Enter the smaller of Item 21 or Item 23.

Item 25

Subtract Item 24 from Item 22, and enter the result.

Item 26

Enter the smaller of Item 13 or Item 25.

Item 27

Subtract Item 26 from Item 13, and enter the result.

Item 28

Multiply Item 27 by 10% or 0.10. Enter the result here and on page 1, Item 14. Check also the Schedule D box on that Item.

Schedule K - Distributions to Beneficiaries

This portion requires you to enter the beneficiaries up to three times.

A. Beneficiary’s name, street address, city, state, and ZIP code

Enter the beneficiary’s full legal name, street address, city, state, and ZIP code.

B. Beneficiary’s SSN

Enter the beneficiary’s Social Security Number.

C. Tier I distributions

Enter the amount of the beneficiary’s Tier I distributions.

D. Tier II distributions

Enter the amount of the beneficiary’s Tier I distributions.

E. Tier III distributions

Enter the amount of the beneficiary’s Tier III distributions.

F. Tier IV distributions

Enter the amount of the beneficiary’s Tier IV distributions.

G. Total distributions

Enter the total distributions by adding the amounts from (c) to (f).

How to file Form 1041-N?

ANSTs must file the 1041-N Form by the 15th day of the fourth month following the close of the tax year. However, if the deadline falls on a weekend or legal holiday, you may file it on the next business day.

Submit your completed IRS 1041-N form to the Department of Treasury of the Internal Revenue Service at Ogden, Utah.