Yikes! Didn't realize I needed to forward K-1 copies.
I am the estate executor. Per the attorney for the estate I submitted all the information a CPA relating to my mother’s estate. And rc’d copies of the Schedule K-1 (Form 1041 Beneficiary’s Share of Income, Deductions, Credits, etc.) back for each of the heirs. I’ve been checking the status of her tax filing and called the CPA’s office. IRS hadn’t shown anything and the CPA’s office assistant said it showed “in process”. To me it looked as though a refund was due and I had also been monitoring the estate account thinking when the refund was posted I would issue cashier’s checks to the heirs and the K-1 form. Today I checked with the bank and then sent the CPA a direct email (vs his assistant) checking on the status. He writes a brief email back stating that I should have sent the Schedule K1 to the heirs right away to include with their tax filings. I don’t know how I missed this – I swear I don’t see anything that says to forward immediately and I thought the bottom line was the amount heirs would be receiving when her return was processed. I will mail the K-1 form right away with a letter apologizing if they have to submit an amended return (I have to amend mine). I am stressing over the fact that one of those letters goes to an heir that is extremely upset with me over the division of the will. I am someone who is very organized (I was “elected” to handle all my living MIL’s on-going paperwork/finances too) and just don’t see where the CPA said to send directly to the heirs. I should have googled Schedule K-1 and learned more. Any suggestions on what to include in my letter of apology to the heirs?