I am using 2021 Federal and State tax return forms for the estate taxes with a fiscal year encompassing part of 2021 and part of 2022. My question is about the 1099 to the lawyer and the K-1's to the heirs, who all use a calendar year for their tax returns. There were no payments to either the lawyer or the heirs in 2021. The estate money was distributed this year (2022) to the heirs and the attorney. Do I use the current (2021) 1099 and K-1 forms or wait to send them out, to both the recipients and the tax departments, when the 2022 forms become available? If I use 2021 forms would they have to claim any taxable income on their 2021 tax forms, even though the money was not received until 2022? I feel like I should just wait until the end of the calendar year to send out the 1099 and K-1's so any taxable income is claimed on 2022 tax returns.
