1999 Department of the Treasury Internal Revenue Service Instructions for Form 1041 and Schedules A, B, D, G, I, J, and K-1 U.S. Income Tax Return for Estates and Trusts Section references are to the Internal Revenue Code unless otherwise noted. Paperwork Reduction Act Notice.   We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Code section 6103. The time needed to complete and file this form and related schedules will vary depending on individual circumstances.   The estimated average times are: If you have comments concerning the accuracy of these time estimates or suggestions for making this form and related schedules simpler, we would be happy to hear from you. You can write to the Tax Forms Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. DO NOT send the tax form to this address. Instead, see Where To File on page 4. Pending Legislation At the time of printing, Congress was considering legislation affecting these instructions. Included in the pending legislation are provisions that would change the definition of a capital asset, modify the treatment of gains from constructive ownership transactions, repeal the use of installment method for certain taxpayers, and limit the use of the nonaccrual experience method of accounting. See Pub. 553, Highlights of 1999 Tax Changes, to find out if this legislation was enacted, and details on the changes. A Change To Note For tax years beginning in 1999, the requirement to file a return for a bankruptcy estate applies only if gross income is at least $6,350. Photographs of Missing Children The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Unresolved Tax Problems Most problems can be resolved with one contact by calling, writing, or visiting an IRS office. But if the estate or trust has tried unsuccessfully to resolve a problem with the IRS, it should contact the Taxpayer Advocate's office.   The estate or trust will be assigned a personal Contents Page Schedule D (Form 1041)—Capital Gains and Losses   .     .     .     .     .     .     .     .     .   24 Schedule J (Form 1041)— Accumulation   Distribution for Certain Complex Trusts   .     .     .     .     .     .   29 Schedule K-1 (Form 1041)— Beneficiary's Share of Income, Deductions, Credits, etc. .     .     .     .     . 30 Form 1041 Schedule D Schedule J Schedule K-1 Recordkeeping 46 hr., 38 min. 27 hr., 59 min. 39 hr., 28 min. 8 hr., 51 min. Learning about the law or the form 18 hr., 25 min. 2 hr., 11 min. 1 hr., 17 min. 1 hr., 17 min. Preparing the form 34 hr., 53 min. 2 hr., 44 min. 1 hr., 59 min. 1 hr., 29 min. Copying, assembling, and sending the form to the IRS 4 hr., 17 min. Contents Page Contents Page Of Special Interest to Bankruptcy Trustees and Debtors-in- Possession .     .     .     .     .     .     .     .     .     .     . 7 A Change To Note .     .     .     .     .     .     .     .     . 1 Photographs of Missing Children .     . 1 Unresolved Tax Problems .     .     .     .     . 1 Specific Instructions .     .     .     .     .     .     . 8 How To Get Forms and Publications 2 Name of Estate or Trust .     .     .     .     .     . 8 General Instructions .     .     .     .     .     .     .     . 2 Address .     .     .     .     .     .     .     .     .     .     .     .     .     . 8 Purpose of Form .     .     .     .     .     .     .     .     .     . 2 Type of Entity .     .     .     .     .     .     .     .     .     .     . 8 Income Taxation of Trusts and Decedents' Estates .     .     .     .     .     .     .     . 2 Number of Schedules K-1 Attached 10 Employer Identification Number   .     .     .   10 Abusive Trust Arrangements .     .     .     . 2 Date Entity Created    .     .     .     .     .     .     .     .     .   10 Definitions   .     .     .     .     .     .     .     .     .     .     .     .     .     . 3 Nonexempt Charitable and Split-Interest Trusts .     .     .     .     .     .     .     . 10 Who Must File .     .     .     .     .     .     .     .     .     .     . 3 Electronic and Magnetic Media Filing 4 Initial Return, Amended Return, Final Return; or Change in Fiduciary's Name or Address .     .     .     .     .     .     .     .     . 10 When To File .     .     .     .     .     .     .     .     .     .     .     . 4 Period Covered .     .     .     .     .     .     .     .     .     .     . 4 Pooled Mortgage Account .     .     .     .     . 10 Where To File   .     .     .     .     .     .     .     .     .     .     .     . 4 Income .     .     .     .     .     .     .     .     .     .     .     .     .     .     . 10 Who Must Sign .     .     .     .     .     .     .     .     .     .     . 5 Deductions .     .     .     .     .     .     .     .     .     .     .     .     . 11 Accounting Methods .     .     .     .     .     .     .     . 5 Tax and Payments .     .     .     .     .     .     .     .     . 14 Accounting Periods .     .     .     .     .     .     .     .     . 5 Schedule A—Charitable Deduction . 15 Rounding Off to Whole Dollars .     .     . 5 Schedule B—Income Distribution Deduction    .     .     .     .     .     .     .     .     .     .     .     .     .   16 Estimated Tax .     .     .     .     .     .     .     .     .     .     . 5 Interest and Penalties   .     .     .     .     .     .     .     . 5 Schedule G—Tax Computation    .     .     .   17 Other Forms That May Be Required 6 Other Information .     .     .     .     .     .     .     .     .     . 18 Assembly and Attachments    .     .     .     .     . 7 Schedule I—Alternative Minimum Tax   19 Additional Information    .     .     .     .     .     .     .     . 7 Cat. 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