The 1041 return is a 2020 return that was due 4/15/2021. It has not yet been filed pending a better understanding of how to treat the distributions to the beneficiaries. I have indicated on the 1041 that it is an initial and final return. I assume this is the correct thing to do. I don’t believe the 65 day rule applies since we are already past that date (assuming the year end is December 2020, correct?). Is it OK to show the distributions that occurred in mid 2021 on the 2020 1041 and generate the K-1s showing the distributions as if they were 2020 distributions? If so the beneficiaries would need to amend their 2020 tax returns showing the 2020 K-1s, correct?
