IL-1041 Sch D

Forum|Forum|2 years ago
March 30, 2024
1 reply
8 views

This is our first year using ProConnect after switching from UltraTax. I have an Illinois trust with no beneficiaries. ProConnect has a diagnostic that requires beneficiary information be entered to be able to efile the IL-1041. The diagnostic reads:Illinois requires Schedule D to electronically file the return. Add a beneficiary or file this as a paper return. If a beneficiary is entered without distributions, do not select "3=suppress" for "Zero Distributed K-1", under K-1 Distribution Options. IL - Ref #40925.

We have prepared and efiled the IL-1041 return for years in UltraTax and before that in ProSystems for multiple trust clients without ever needing to complete the Illinois 1041 schedule D. I contacted support, who made a good effort, but without success.

How can I resolve the diagnostic so we can efile the IL-1041?

This topic has been closed for replies.

sjrcpa

Level 15

Who is it in trust for?

There has to be at least 1 beneficiary. They may not be getting any income on a K-1, and you may not issue a K-1, but someone is going to benefit eventually. And you may not have their name, address and SSN but that's different.

The more I know the more I don’t know.

L

larryefrazeAuthor

Level 3

We have a few like this where there is no identified beneficiary. The one I am working on is a trust that issues $500 scholarships to different recipients each year, so I suppose it could be argued that the beneficiaries change each year.

Regardless, this was set up in 2005. In almost twenty years, we have never listed a beneficiary and Illinois has accepted every time without a beneficiary. I want to clear the diagnostic without adding beneficiaries so we do not create inconsistency for the client.

And, the diagnostic cannot be right as evidenced by prior years filings.

sjrcpa

Level 15

Interesting. Sounds more like a trust that should be reporting on a 990 or 990PF. But you have to deal with what you have.

Whether it is an Intuit thing or an IL thing, you won't be able to efile unless you clear the Diagnostic.

Could you dummy up a beneficiary - such as "the class of people who got scholarships", trust address, and 999-99-9999?

The more I know the more I don’t know.

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