AICPA urges IRS to modernize estate and trust tax forms

The AICPA recommended in a letter that the IRS improve several tax forms used by estates and trusts, in keeping with an executive order mandating that federal tax payments and refunds be processed electronically.

The forms that need improvement, the AICPA said in the Sept. 12 letter, are:

• Form 1041, U.S. Income Tax Return for Estates and Trusts (2024);
• Instructions for Form 1041 and Schedules A, B, G, J, and K-1 (Rev. Jan. 14, 2025); and
• Form 1041-A, U.S. Information Return Trust Accumulation of Charitable Amounts (Rev. September 2018).

“These outdated forms and paper filing should be revised as we suggested, particularly as they pertain to the filing of complex tax issues like foreign investments and charitable deductions,” Eileen Sherr, CPA, CGMA, director–Tax Policy & Advocacy for the AICPA, said in a news release. “These recommendations will simplify filing for taxpayers and practitioners and will help reduce the administrative burden on the IRS while also improving processing efficiency.”

The recommendations align with Executive Order 14247, Modernizing Payments To and From America’s Bank Account, and the AICPA’s Guiding Principles of Good Tax Policy, the AICPA said.

The AICPA said the recommendations aim to:

• Make filing easier for taxpayers and tax professionals;  
• Reduce mistakes and delays caused by unclear instructions or manual workarounds;
• Support electronic payments and filings, which are part of a broader government push to modernize how taxes are handled; and
• Protect sensitive information by allowing electronic delivery of tax forms instead of relying on physical mail, which can be lost or stolen.

The deadline for compliance with Executive Order 14247 is Sept. 30, 2025.

The recommendations are in addition to previously submitted comments on Form 1041 and Form 1041-A as well as an AICPA-proposed Form 1041-NR, U.S. Income Tax Return for Foreign Estates and Trusts, and related proposed schedules that are still relevant.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.