Schedule K-1 Form 1041 Fiscal vs Calendar Year

[jurgens]

We received a Schedule K-1 for funds received from a one-time distribution from a trust.  We received the funds in 2020.  The K-1 has a fiscal year ending 1/31/2021.  Should we enter the K-1 information for our 2020 tax return or use it for 2021?

[tagteam · Accepted solution]

Per Reg Section 1.652(c)-1, you can report the income (and other items) that appear on the K-1 you received (with a fiscal year ending in 2021) on your 2021 income tax return.

[jurgens]

Can we choose to report it with our 2020 taxes?

[tagteam]

No, not really; this is not a choice.

Even if you did report the K-1 on your 2020 return, you would likely receive a letter from the IRS concerning a matching issue on your 2021 return.