What you said does not make sense. So if an individual receives a 1099-R with tax free distribution (tax free annuity or ROTH) the individual need to report it on their tax return, but if a trust receives the same 1099-R with tax free distribution (same tax free annuity or ROTH) , the form should be ignored and not reported to the IRS. Then why does the trust receive a 1099-R in the first place if it does not need to be reported. Is the IRS going to be okay receiving an 1099-R that is not tied to a tax return.
Also the various accounting firms who have been doing the trust, who have been doing it in the past, they have been reporting it on a Schedule K-1 Line 12A and 12J. I have been trying to duplicate their results myself, but can't seem to get access to the Form/Lines through TurboTax's Step-By-Step method and not sure why.
