Estate 1041 had income and partial distributions made same year. Is there a way to not pass through the income to the beneficiaries (are the k-1's mandatory) or can the estate just pay the tax somehow directly?

[atlucas001]

Estate 1041 had income and partial distributions made same year. Is there a way to not pass through the income to the beneficiaries (are the k-1's mandatory) or can the estate just pay the tax somehow directly?

Estate is in Texas. Amount distributed was above the income of the estate, but the estate is not yet closed out. More than the income value is still in the estate.

Estate closeout is delayed until 2023 due to IRS backlog of prior year returns.

If I have to file K-1's then all the beneficiaries have to file amended returns. Is there some mechanism that the estate can accept the income directly and pay the taxes for it verus passing that income out onto the beneficiaries returns?
Reference form 1041, primarily schedule B.

[Anonymous_ · Accepted solution]

Distributions during the estate's tax year carry out DNI to the beneficiaries which should be reported on the K-1s (i.e., that is the proper procedure).

On the other hand, the IRS most likely will not throw a fit if the estate pays any tax liability due at the highly compressed estate income tax rates.