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Should I distribute dividends from irrevocable trust, or reinvest them
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You absolutely must review the trust document itself and I strongly suggest you seek legal and tax counsel if there is any confusion or ambiguity.
Some trusts allow accumulation of income while others require that income be distributed currently and many others give the discretion to the trustee regarding exactly which type of income, gain, and principal to distribute. Again, the trust document needs to be examined.
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Seek professional guidance on this matter ... is this a new trust ? An irrevocable trust pays it's own income taxes ...so have you filed returns in the past correctly ? As already mentioned does the trust even allow for the distribution or require it. If you are asking this question then you need to find the answers ... seek local assistance if needed.
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if certain criteria are met, even a supposedly irrevocable trust, is for income tax purposes treated as a grantor trust. this means that for income tax purposes the trust is ignored and all the income is taxed to the grantor. so it would make no difference as to whether or not the income is distributed or reinvested. Get professional guidance.