When I applied for the EIN ID number for the trust, the PDF letter that the IRS gives online has a sentence in it which says “You must file Form 1041 on this trust.” I thought this trust has no filing requirements?
When a tax ID number (EIN – Employer Identification Number) is applied for, for banking purposes only, for a pure, irrevocable, private contract trust, the online letter that comes from the IRS providing the EIN states that “form 1041 must be filed”, but that only applies to statutory entities.
“If no information or return is filed, [the] Internal Revenue Service cannot assess you”. – – Gary Makovski, Special IRS Agent, testifying under oath in US. v. Lloyd.
The IRS has no category for “non-statutory”. The NLT constitutes an exception (not exempt – big difference), in the sense that the statutory filing requirements don’t apply to them. This fact has been successfully tested by all NLT clients for several decades. It is a well-established fact.
Being an “exception” to the filing requirements is a far more powerful status than being “exempt”, because “exempt” is a statutory term that can be granted by the IRS and can be revoked by the IRS. The category of “exception”, however, is not given – – and therefore cannot be taken away. It is a permanent and irreversible status of being outside the venue of all statutory requirements. It’s like an airplane flying in the sky which doesn’t have to follow the road rules of cars driving on the ground.
For those who still lack the courage to see the wisdom in this, consider the saying that “the only rights you have are the rights you know you have.” You have now been informed that you have the right to ignore the 1041 requirement, because that requirement only applies to statutory entities. Thus you can only “have” and enjoy this right if you clearly KNOW that you have it and choose to exercise it accordingly.