<keefnj[at]aol.com> wrote in message
news:b3a61a1c-5471-41f4-bc08-391a3349651a[at]y21g2000hsf.googlegroups.com...
- quote -

If the income remained in the trust, I don't see why it would be listed on
the K-1 (DISTRIBUTED income).

- quote -

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I have an estate that cashed in substantial US Bond interest. I am
trying to determine if I should amend the decedents final return
(2006) and include the interst on the final 1040 or include on the
1041.

No income has been distributed to the beneficiaries at this point (new
client). I am doing a 12/31/07 Form 1041. Can I report the income
(interest) on a K-1 if the income remains in the trust? Is it too late
to distribute and report on K1? Note that the K1 approach would result
in the lowest tax.

If the only option is that it would be taxed at the estate level
(which I suspect) what penalty/interest charges can I expect on the
2006 Form 1040X. I have only run into interst charges on prior amended
returns I've done. This is a large one so I don't want a surprise FTP
or FTF penalty.

Thank You.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >