Instructions For Form 541-Es - Estimated Tax For Fiduciaries

1999 Instructions for Form 541-ES

Estimated Tax For Fiduciaries

General Information

Real Estate Mortgage Investment Conduit

Line 7 – Credits

(REMIC) trusts are not required to make estimate

For more information on credits you may claim,

Fiduciaries that are required to make estimated

payments.

see the instructions for Form 541.

tax payments for more than 200 taxable trusts

C When to Make Your Estimated

E How to Use Form 541-ES

may submit the estimated tax payment informa-

Tax Payments

Payment Voucher

tion on magnetic tape or composite listing. For

additional information about submitting Form 541

For estimated tax purposes, the year is divided

There is a separate payment voucher for each

estimate payment information on magnetic tape

into four payment periods. Each period has a

due date. Please be sure you use the voucher

or composite listing, call (800) 852-5711.

specific payment due date. If an estate or trust

with the correct due date shown on the right side

For taxable years beginning on or after

does not pay enough tax by the due date of

of the voucher.

January 1, 1997, an electing small business trust

each of the payment periods, it may be charged

Fill in Form 541-ES:

(ESBT) may be a shareholder in an S corpora-

a penalty even if it is due a refund when it files

1. Print the estate’s or trust’s name, the fiduci-

tion. An election made by the trustee under

its income tax return. The following chart gives

ary’s name and title, mailing address, and the

Internal Revenue Section (IRC) 1361 is consid-

the payment periods and due dates.

estate’s or trust’s federal employer identifica-

ered to be an election for California purposes,

The payment

tion number (FEIN) in the space provided on

and no separate election is allowed (California

For the period . . . . . .

due date is

Form 541-ES. Use black or blue ink. The

Revenue and Taxation Code (R&TC) Section

Jan. 1 through March 31, 1999

April 15, 1999

scanning machines may not be able to read

April 1 through May 31, 1999

June 15, 1999

23800.5). Tax is computed at the highest rate

June 1 through August 31, 1999

Sept. 15, 1999

other colors of ink or pencil. Print all names

under R&TC Section 17041. For taxable years

Sept. 1 through Dec. 31, 1999

Jan. 18, 2000

and words in CAPITAL LETTERS. Print let-

beginning on or after January 1, 1998, the high-

Filing an Early Return in Place of the 4th

ters and numbers inside boxes. If your name

est rate is 9.3% (R&TC Section 17731.5).

Installment. If an estate or trust files its 1999 tax

or address is too long to fit in the boxes pro-

A Purpose

return by February 1, 2000, and pays the entire

vided do not shorten your name or address.

balance due, then it does not have to make its

Instead, ignore the boxes and fit the informa-

Use Form 541-ES to figure and pay estimated

last estimated tax payment.

tion in the space provided.

tax for an estate or trust. Estimated tax is the

Annualized Option. If the estate or trust does

amount of tax the fiduciary of an estate or trust

2. Enter in the payment box of the voucher only

not receive its taxable income evenly during the

expects to owe for the year after subtracting the

the amount you are sending in. When making

year, it may be to its advantage to annualize the

amount of any tax withheld and the amount of

payments of estimated tax, be sure to take

income. This method allows for the matching of

any credits.

into account any 1998 overpayment that you

estimated tax payments to the actual period

chose to credit against your 1999 tax, but do

B Who Must Make Estimated Tax

when income is earned. Use the annualization

not include the overpayment amount in the

schedule included with form FTB 5805, Under-

Payments

amount of your payment.

payment of Estimated Tax by Individuals and

3. If part of the estimated tax from Form 541-ES

Generally, a fiduciary of an estate or trust must

Fiduciaries.

is to be allocated to the beneficiaries per IRC

make 1999 estimated tax payments if:

Farmers and Fishermen. If at least 2/3 of gross

Section 643(g), attach a copy of Form 541-T,

•

Less than 80% of the estate’s or trust’s 1998

income for 1998 or 1999 is from farming or fish-

California Allocation of Estimated Tax

tax was paid by withholding; or

ing, the estate or trust may:

Payments to Beneficiaries, to Form 541-ES.

•

Less than 80% of the estate’s or trust’s 1999

•

Pay the total estimated tax by January 18,

4. Make your check or money order payable to

California adjusted gross income (AGI) will be

2000; or

‘‘Franchise Tax Board.’’ Write the FEIN and

wages subject to withholding; or

•

File Form 541 for 1999 on or before March 1,

‘‘Form 541-ES 1999’’ on the check or money

Less than 80% of the estate’s or trust’s 1999

2000 and pay the total tax due. In this case

order. Mail your Form 541-ES and your check

tax will be paid by withholding.

estimated tax payments are not due for 1999.

or money order to:

An estate or trust is not required to make 1999

Attach form FTB 5805F, Underpayment of

FRANCHISE TAX BOARD

estimated tax payments if:

Estimated Tax by Farmers and Fishermen, to

PO BOX 942867

•

The tax for 1998 (after subtracting withholding

the front of Form 541.

SACRAMENTO CA 94267-0031

and credits) was less than $200; or

Fiscal Year. If the estate or trust files its return

•

5. Keep a record of the payment.

The tax for 1999 (after subtracting withholding

on a fiscal year basis, the due dates will be the

6. Fiscal year filers: If you file your return on a

and credits) will be less than $200.

15th day of the 4th, 6th and 9th months of the

•

It is a decedent’s estate for any tax year end-

fiscal year basis, be sure to fill in the month

fiscal year and the first month of the following

ing before the date that is two years after the

and year-end information.

fiscal year.

decedent’s death; or

F Failure to Make Estimated Tax

•

If the due date is a Saturday, Sunday or legal

It is a trust that was treated as owned by the

holiday, substitute the next regular work day for

Payments

decedent and if the trust will receive the

the due date.

residue of the decedent’s estate under the

If an estate or trust is required to make estimated

will (or if no will is admitted to probate, the

D How to Figure Estimated Tax

tax payments and does not, or if it underpays

trust primarily responsible for paying debts,

any installment, a penalty will be assessed (with

Use the Estimated Tax Worksheet and the 1998

taxes and expenses of administration) for any

certain exceptions) for that portion of estimated

Form 541 return as a guide for figuring the 1999

tax year ending before the date that is two

tax that was underpaid from the due date of the

estimated tax payment.

years after the decedent’s death.

installment to the date of payment or the due

Line instructions for the Estimated Tax

For taxable years beginning on or after

date of the tax return, whichever is earlier. For

Worksheet

January 1, 1999, estates and trusts with

more information, get form FTB 5805.

Line 5 – Additional taxes

adjusted gross income greater than $150,000

Enter any additional tax from:

must base their estimated tax on the lesser of

•

80% of their current year’s tax or 105% of the

FTB 5870A, Tax on Accumulation Distribution

prior year’s tax.

of Trusts;

•

IRC Section 644 tax on trusts;

If the estate or trust must make estimated tax

•

IRC Section 453A tax, relating to certain dis-

payments, use the Estimated Tax Worksheet on

positions under the installment method; or

the following page to figure the amount owed.

•

IRC Section 641(d) on income attributable to

S corporation stock held by an ESBT.

Form 541-ES Instructions (REV. 1998) Page 27

Instructions For Form 541-Es - Estimated Tax For Fiduciaries - 1999

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