Federal Extension for Form 1041

The instructions for the 2016 version of Form 7004 have been released, and they provide an automatic 5½ month extension for both trusts and estates of decedents filing Form 1041.  In prior years, the available extension period was only 5 months.

This represents an administrative grace extended by the IRS, since the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, which was enacted on July 31, 2015, provided a 5½ extension for trusts but not for estates.

New York had previously announced that it would grant an automatic 5½ extension for both trusts and estates filing Form IT-205.