Background using example numbers - 

1) The decedent had 1000 paper US Treasury bonds with supermajority matured but not redeemed.

2) 454a election was taken on the decedent’s last 1040 and tax on estimated accrued interest up to DOD was paid on decedent’s last 1040 return 

2) US Treasury bonds did not have a POD/beneficiary 

3) US Treasury disbursed proceeds from matured bonds at date the US treasury processed the paper bonds to the decedent’s estate under the estate EIN.  The interest income is slightly larger than interest reported on decedent’s last returned as a result between DOD and US treasury processing date.

4) US treasury reissued treasury bonds that have not matured to beneficiaries as directed by the administrator of the estate.

 

Question and issue.

1) is there an option to report interest income on the estate 1041 without passing to beneficiaries through a K1?

2) if so, how is the tax on interest paid on the decedent’s last return recorded/reported on the 1041? (Process used for 1040 does not appear to be available)

 

If there is the option for reporting interest on estate return or pass to beneficiaries on K1, I would like to compare tax implications as there are deductions available to the estate.

 

Thanks