For this: "It would be crazy to amend 2020 to report all the distribution...there would be penalties and interest to deal with."

If a taxpayer had a significantly better year 2 of the 3, after a bad year 1 due to covid, then perhaps amending would have been cheaper than reporting that additional income in year 2 and year 3, now that they see how it turned out. Some who asked the question previously was weighing those differences.