The 1041 K-1 passes trust or estate income through to the beneficiaries. Page 2 of the beneficiary’s K-1 is instructions related to how to report the income, deductions, and credits on their 1040. Since practitioners use 1041 software to prepare the 1041, the software will automatically complete the K-1s from information input for the 1041. The 1041 instructions beginning on page 41 are for the preparer of the K-1.

Individuals and business recipients are responsible for providing their TINs upon request. Form W-9 may be used by the fiduciary to request the beneficiary's identifying number. For nonresident beneficiaries see page 3.38.06.

A $60 penalty applies for each failure to provide a required TIN, unless reasonable cause is established for not providing it. Explain any reasonable cause in a signed affidavit and include with the return.

As a privacy and security measure, the estate or trust can truncate a beneficiary’s identifying number on the beneficiary’s copy of 1041 Schedule K-1. Truncation isn't allowed on the Schedule K-1 the estate or trust files with the IRS. Also, the estate or trust can't truncate its own identification number on any form. To truncate, where allowed, replace the first five digits of the nine-digit number with asterisks (*) or Xs.