It depends. If you paid the tax with the estate tax return (Form 1041) then it's not necessary to include the income on the K1. If your K1 shows no income, then there is nothing to report on your tax return. You wouldn't keep filing this form is the income accounts have been transferred to the beneficiaries.
Another option would be to change the 1099 name to the name of the beneficiaries and report it on the individual return. See the information below (use the 1099 that applies to you if you choose to do this. At the very least it should be done in the future.
Nominee Returns. This is how the IRS knows what you are doing.
Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners.
File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)
- On each new Form 1099, list your dad as the payer and the other owner, as the recipient. On Form 1096, list your dad as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.
The forms filed with the IRS should be the red copy (use the form(s) needed) so if you don't have a color printer, go to the IRS website to fill in and print the forms here: :
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