Wispact Newsletter Winter 2025
Wispact Annual Report: A Message from our Executive Director
As Wispact approaches its 22nd year of operation, it’s a great time to reflect on our accomplishments in 2024 and look ahead to our strategic plans for 2025. The year 2024 marked significant milestones for Wispact while continuing to set higher standards for the quality of our services and our impact on the community of individuals with disabilities. For the first time in our history, Wispact surpassed 5,000 beneficiaries receiving trust services, currently serving over 5,200 individuals.
However, growth only matters when it enhances the experience of both Beneficiaries and Advisors. With this in mind, Wispact expanded its team and strengthened its IT infrastructure to ensure smooth, efficient processes. We are proud to report that we met our goal of delivering high-quality services, as evidenced by outstanding Net Promoter Scores (NPS). Our commitment to excellence drives us to continuously improve efficiency, reliability, and overall satisfaction for our Beneficiaries, their families, and our strategic partners. I would also like to acknowledge the incredible team at Wispact—the staff and Board of Directors—whose dedication and hard work are at the heart of our success. Without their tireless efforts and the support of our entirely volunteer Board, Wispact would not be able to achieve its goals. 2024 was a remarkable year, but as we move into 2025, we are focused on continuing to provide the highest level of service to those who need it most.
– Executive Director, Kevin Hayde
Read the 2024-2025 Wispact Annual Report
Information Regarding Taxes – for Beneficiaries and Advisors
This information is provided by True Link Financial, Inc. which is facilitating tax preparation with a third party vendor
Reporting Requirements
Forms 1099 and W-2
Due to IRS: January 31
Banks and investment companies are required to file Form 1099 which lists all of the income, gains or losses that a customer has received in the previous year. Other
payments, such as payments made to independent contractors, are also filed on Form 1099. Employers are required to file a W-2 with the IRS that reports the employee’s
wages and withholdings. All of these forms are due to the IRS, with copy due to the customer or employee, by January 31st.
Income Tax Requirements
Forms 1040 and Form 1041
Due to IRS: April 15
A trust, just like an individual, is required to file an income tax return every year reporting the previous year’s income. Individual income tax returns are filed on Form
1040 while trust income tax returns are filed on Form 1041. Both of these income tax returns are due April 15th.
Income, Gains and Losses, and Distributions from Trusts
Grantor Letter and Schedule K-1
Due to IRS: April 15
Income tax forms have attachments to them that detail the activity of the past year. For first party trusts, Grantor Letters are attached to Form 1041. These letters detail the
activity within the trust that may be taxable to the beneficiary. For third party trusts, Schedule K-1s are attached to Form 1041. These schedules detail the activity with the
trust that may be taxable to the beneficiary. Grantor Letters and K-1s are, for purposes of this memo, the same thing. Notably, both are due to the IRS on April 15th – when the Form 1041s are due. At the time of filing the Form 1041, the Grantor Letters and K-1s are sent to the beneficiaries of those trusts.
The Resulting Timing for Beneficiaries
Because we realize that receiving Grantor Letters or K-1s AFTER April 15th means that the beneficiaries must file for an extension of time with the IRS for their individual
income tax returns, we have worked with the third-party tax preparer to accelerate the filing date for the trust income tax returns – Form 1041. They strive to have these filed
by March 15th which would mean that the Schedule K-1s and Grantor Letters would be mailed by March 15th. We sincerely wish we could ask the tax preparer to file even
earlier, but the trust tax returns cannot be filed until the 1099s are received from the investment custodian which is not until January 31st.
Amended Form and Returns
Unfortunately, all of these deadlines cause ripple effects. If the investment company later discovers additional information, the custodian or bank sends an amended or
corrected Form 1099. When the trust receives an amended or corrected Form 1099, the tax filing process must begin again with an amended or corrected Form 1041. That
means, of course, that amended or corrected Grantor Letters or K-1s are then sent to the beneficiaries who in turn, will have to file an amended income tax return. While all
of this is unfortunate to the beneficiary, it does happen routinely and should be expected from time to time. IMPORTANT: If you receive a 1099 or K-1 from an outside source or amended/corrected 1099 or K-1, please forward it to us immediately as it will impact the entire return!
Filing Requirements for Beneficiaries
Income taxes filing requirements are complex and every beneficiary has a unique situation. To be sure a beneficiary is meeting the IRS requirements, the fiduciary should
recommend that the beneficiary or the beneficiary’s representative, take the Grantor Letter or K-1, along with any other informational filings received, to a tax professional.
The tax preparation fees and any taxes due are properly paid from the beneficiary’s sub-account.
Tax Facilitation by True Link Financial, Inc – True Link Financial, Inc. is not a Tax Professional and does not perform the tax preparation services. True Link Financial, Inc. cannot offer tax or legal advice to customers or the customers’ beneficiaries and nothing in this correspondence should be construed as legal or tax advice.
MISSION STATEMENT »
“We enhance the well-being of people of all ages with disabilities across Wisconsin through the management of special needs trusts by promoting more choice and opportunities.”
About the Email Newsletter
Beneficiaries and Advisors – Wispact has switched to an email format for newsletters. If you would like someone to receive this (beneficiary or advisor), please reply to James Giese, Director of Communications, jgiese@wispact.org or call 608-268-6006 ext 209. To unsubscribe, click on the unsubscribe link at the bottom of the email or reply to this message with your unsubscribe request.
If you have questions about your trust account, please contact your Beneficiary Specialist.
Wispact, Inc.
226 Corporate Drive
Madison, WI 53714
(608) 268-6006 | F (608) 252-8449
For a staff listing: https://www.wispact.org/staff/
Wispact, Inc. is not a registered investment adviser, registered stock broker or broker-dealer and does not offer investment advisory services, programs or products. Any investment questions should be directed to qualified licensed professional financial advisers.