Q: trustee kept my distribution (stole) but sent me a k-1 do I have to pay tax
It is a simple trust and I am supposed to receive the money. I am replacing trustee and may sue to get my money but will IRS require me to pay taxes on K-1 income that I have not received. The trust holds rental property and have not seen money the last 2 years. $9,000 annually
A: Assuming that the k-1 is correct you are required to report and pay any tax owed. Recovering any money owed to you is a seperate issue.
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