How can I change the tax year for a new Trust

Forum|Forum|3 months ago
March 21, 2026
3 replies
35 views

My client created a new Family Share Trust with a new EIN in October of 2025. The letter from the IRS stated the 1041 is due by April 15th 2026.

Client would like to change the trust to a Fiscal year so they can file later than April 15th due do issues with finalizing the transfer of assets to the new Trust which was created due to the death of their surviving parent September 2025.

How can this be accomplished?

ProSeries Professional

Best answer by Accountant-Man

Yes, a trust can have a fiscal year-end, but it is not standard. While most trusts must use a calendar year (ending Dec. 31), a trust can adopt a fiscal year if it makes a valid IRC §645 election to be treated as part of an estate for income tax purposes.

Key Details on Trust Fiscal Years:

Default Rule: Without a 645 election, trusts must use a calendar year end, notes The Tax Adviser.
645 Election: This allows a qualified revocable trust to adopt the same fiscal year as the decedent’s estate, providing more time to settle the estate and file tax returns.
Benefits: A fiscal year allows trustees to defer income tax from one year to another and offers flexibility in managing trust income.
- Short Tax Year: A trust might have a "short year" upon becoming irrevocable or when finalizing.
  For trusts not eligible for a 645 election, the calendar year remains mandatory.
- Thank you, Google.

Accountant-ManAnswer

Level 13

Yes, a trust can have a fiscal year-end, but it is not standard. While most trusts must use a calendar year (ending Dec. 31), a trust can adopt a fiscal year if it makes a valid IRC §645 election to be treated as part of an estate for income tax purposes.

Key Details on Trust Fiscal Years:

Default Rule: Without a 645 election, trusts must use a calendar year end, notes The Tax Adviser.
645 Election: This allows a qualified revocable trust to adopt the same fiscal year as the decedent’s estate, providing more time to settle the estate and file tax returns.
Benefits: A fiscal year allows trustees to defer income tax from one year to another and offers flexibility in managing trust income.
- Short Tax Year: A trust might have a "short year" upon becoming irrevocable or when finalizing.
  For trusts not eligible for a 645 election, the calendar year remains mandatory.
- Thank you, Google.

** I'm still a champion... of the world! Even without The Lounge.

Accountant-Man

Level 13

ps It doesn't sound like you qualify.

** I'm still a champion... of the world! Even without The Lounge.

BobKamman

Level 15

"Family Share Trust" is not a legal term, it's a marketing term (seems to be the topic of YouTube videos) that probably promise more than they can deliver. What keeps this from being a grantor trust? And no, "irrevocable" doesn't cut it.

sjrcpa

Level 15

Maybe the parent's estate can make the election. We don't have enough info to tell.

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

BobKamman

Level 15

"My client created a new Family Share Trust . . .Client would like to change the trust to a Fiscal year"

Sounds like the client is still alive. But then, maybe we are just looking at shadows on the wall of a cave.

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