With Respect to a Timely Filed Form 1041 for a Trust

question 71

Multiple Choice

With respect to a timely filed Form 1041 for a trust based in Delaware, the IRS will accept:

• A)Only paper returns.
• B)Only e-filed returns.
• C)Returns either on paper or in electronic form.
• D)Returns only at its Ogden, Utah office.

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Definitions:

Prepaid Expenses

Costs paid in advance for goods or services, which are accounted for as assets until the benefits are realized.

Investing Activities

Financial transactions and events related to acquiring or disposing of investments and long-term assets.

Bonds Payable

A long-term liability representing the amount owed by an entity to bondholders, to be repaid at the bond's maturity date.

Cash Sale

A cash sale occurs when a customer pays for goods or services immediately at the time of purchase, usually with cash, check, or electronic methods.