Thank you! The K-1 option seems the best, because otherwise I get into so many 1099s (-INT and -DIV from several banks and brokers) and because it's already past time to send to the recipient and getting close to the time when I'd have to report to the IRS. With a K-1 I could simply come up with an interest, dividend, and perhaps capital gain for the same individual (my late wife) while still being easily able to explain the figures if I get audited. This is the first time I've heard of using K-1 for this purpose. (The lawyer, who is a enrolled agent, says NOT to use 1099s for this purpose because it would confuse the IRS; she wants me to adjust the income figures and attach an explanation, but I believe that would mean I can't e-file. And all other help along this line suggests 1099s.) Is there any chance the K-1 could come back to bite me?
