Since there was more then $600 in interest income reported with the estate's federal ID number, an estate return would be required to report that income, even if it was liquidated during the year. So, the proper thing to do would be to prepare an estate tax return and K-1 schedules reporting the income distributed to the beneficiaries.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
