The total federal tax withholding on 1041 final return, with no tax due, is not allocating to beneficiaries entirely. Portion is being applied to 1041 as a payment to be refunded. I want 100% of the withholding to go to the beneficiaries. Anyone know why? There is no worksheet that indicates how the payment is being calculated.
I believe only backup withholding or estimated payments can be allocated to beneficiaries, withholding from a 1099 cannot be distributed out to them individually.
Found a previous discussion posted in Dec 2019 about this. Thank you!