@collinsb032 wrote:
....I was watching a video and the man stated K-1's need to be filed by the due date or $195/beneficiary can be charged per month. I read something where K-1's should be sent out to beneficiaries by 15 March.....
The video probably applied to K-1s for partnerships/multi-member LLCs (Form 1065) and S corporations (Form 1120-S).
K-1s for trusts/estates (Form 1041) are required to be provided on or before the due date for the return (Form 1041) which is typically mid-April for calendar year estates or trusts or the 15th day of the 4th month following the close of the tax year for the trust or estate.
See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000285999
Failure To Provide Information Timely
You must provide Schedule K-1 (Form 1041), on or before the day you are required to file Form 1041, to each beneficiary who receives a distribution of property or an allocation of an item of the estate.
For each failure to provide Schedule K-1 to a beneficiary when due and each failure to include on Schedule K-1 all the information required to be shown (or the inclusion of incorrect information), a $290 penalty may be imposed with regard to each Schedule K-1 for which a failure occurs. The maximum penalty is $3,532,500 for all such failures during a calendar year. If the requirement to report information is intentionally disregarded, each $290 penalty is increased to $580 or, if greater, 10% of the aggregate amount of items required to be reported, and the $3,532,500 maximum doesn't apply.
The penalty won't be imposed if the fiduciary can show that not providing information timely was due to reasonable cause and not due to willful neglect.
@collinsb032
