filling out K1 when distributing principal and earned interest from CD in a trust

[trustenforcer]

If principal and earned interest are distributed from a trust but all taxes have already been paid in full by Estimated Taxes, how would I fill out a K1?

[Hi Palms]

Normally the distribution carries through DNI if made in the same year as the income is earned. Nevertheless, if the trust has paid any tax due a K-1 is not necessary or you could provide one to each of the beneficiaries with no numbers in Part III to let them know there is nothing to report.

[trustenforcer]

Thank you, my original question wasn't clear.  interest was earned prior year and there is NO current year income so it is all principal distribution. When filing FINAL 1041 NEXT APRIL, would I need to send IRS and each beneficiary a K1 with zero in boxes? Again, appreciate your help VERY much.