I have a client that receives royalty checks several times throughout the year. The income was supposed to be for her niece but wasn't set up that way because of her being a minor. When shereceives the checks, she immediately signs the checks and deposits them directly into her niece's trust account. Her previous accountant told her that with good records, she didn't have to report that income on her return but instead it would be on her niece's trust return.

I have looked but have been unable to find anything that will confirm that treatment. Can someone point me in the right direction or explain how I would report it? Or, is this not allowed?

Jeremy