At a glance
- The rules governing charitable deductions would not change.
- A trust whose only Section 642(c) charitable deduction comes through partnerships or other qualifying pass-through entities would no longer file Form 1041-A. Trusts that give directly or have other reportable charitable activity may still need to file it.
- The second change would confirm that split-interest trusts required to file Form 5227 need not file a separate Form 1041-A. IRS procedures have generally directed those trusts to Form 5227 since the 2007 tax year, but Treasury regulations have not fully reflected that.
The IRS proposed regulations in August 2026 that would eliminate certain Form 1041-A filings for charitable trusts and clarify split-interest trust reporting, WealthManagement.com reported. The rules governing charitable deductions would not change.
A trust whose only Section 642(c) charitable deduction comes through partnerships or other qualifying pass-through entities would no longer file Form 1041-A. Trusts that give directly or have other reportable charitable activity may still need to file it.
The second change would confirm that split-interest trusts required to file Form 5227 need not file a separate Form 1041-A. IRS procedures have generally directed those trusts to Form 5227 since the 2007 tax year, but Treasury regulations have not fully reflected that.
For trustees and preparers of trusts that hold partnership interests, the change could mean one fewer information return to prepare, review and file. The proposal applies only to trusts that meet the criteria.
Reported by the RIA desk from WealthManagement.com. Published . Corrections