My client is a trust that received a $20,000 IRA distribution in 2020 (been receiving their IRA distribution as a beneficiary since 2009).

I filed the 2020 trust tax return two months ago. Now, the financial advisor tells me that the trust repaid/returned the IRA distribution to the custodian in 2020 in accordance with the coronavirus relief rules and is requesting that I amend the 2020 trust return to remove the IRA income. (Yes, the distribution qualifies as coronavirus-related distribution.)

Is that allowed? Was a trust allowed to send a coronavirus-related IRA distribution back to the custodian or was that only permitted to be done by individuals?