Irrevocable Trusts and Capital Gains Income On January 29, 2021 / Estate Planning Basics / 15 Comments Irrevocable trusts are very different from revocable trusts in the way they are taxed. An irrevocable trust needs to get a tax ID (EIN) number and pay taxes each year by filing a 1041 tax return. Trust tax rates are very high as you can see here.