A K-1 is a tax form filed to report income, deductions, and credits for pass-through entities. The purpose is to communicate to the beneficiaries the amounts they need to report on their individual tax returns. If none of the income was distributed to the beneficiaries, none of it would be reported to them on the K-1 as a distribution of earnings. If you didn't make any distributions of taxable income or gains then you you would not report it on the K-1s. Unlike a partnership or an S-Corp that also report income, deductions, and credits on Forms K-1, beneficiaries of an estate or trust do not have a taxable basis that needs to be tracked, so non-taxable distributions of principal and cash do not need to be reported.
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