Preparing a final estate Form 1041 with income > $600, but capital losses and deductions to offset the income.
Beneficiaries are receiving cash distributions to close the estate.
No income being distributed but there are excess deductions.
Some of the beneficiaries do not want to provide their SSNs.
Can I file the final 1041 without including Schedule K-1s? All the beneficiaries would be OK with that.
@Jdconn wrote:Can I file the final 1041 without including Schedule K-1s? All the beneficiaries would be OK with that.
Yes, but not the optimum. I'd try to have each bene sign off on it by having them sign a short statement to that effect, preferably notarized.
Helpful, but without specific references I would not go this route.
There is no guidance for going the route you delineated.
If you want to make a distribution and issue K-1s there is guidance if beneficiaries will not provide their SSNs.
First of all, failure to provide an SSN in that circumstance can result in penalties under Section 6721. Further, the trustee (or executor) must send the beneficiariy a W-9 and then document attempts to obtain the SSN. There is also the possibliity of backup withholding.