They must report income on a 1099 or K-1, regardless of what the recipient's tax filing obligation is.If the trust is the only layer with an EIN, then the income is treated as being received by the trust.  

Interest is taxed by the recipient as income.How is principal taxed?

I will be suggesting that my tenants obtain Renter's Insurance, but approximately 50% of my tenants are low income section 8 recipients, its hard to sell them on Renter's Insurance. 

It instantly makes the recipient feel like they forgot to pay a bill, then when they read it they get angry. 

I put myself in the recipient's shoes and ask myself what would I think of this Romeo guy and his Elite Home Buying Services if he left a flyer on my car?

@Vlad B.If you are the designated recipient of the check, I would contact the bank that processed (ie accepted) the check and advise them that the check was fraudulently deposited (if that is what you are saying happened).  

Despite a lawyer who advertises online that he can do US notarization from Tokyo, he is out of jurisdiction so it may not be accepted by the recipient back in the US.

Then they asked me to set up bank transfers from their bank to mine, which obviously no bank is going to let the recipient initiate.

Purchase price: $8,000 Cash invested: $2,500 Sale price: $35,000 Purchased from tax sale recipient and was coming up for another tax sale from the guy who bought it at a tax sale. , Hoarder home empty for a few years.

It exists for a good reason.Finally, if the bank decides to honor the tenant's dispute, we (Cozy) have to attempt to collect lost/disputed payments from a landlord because they are the merchant and the intended recipient of tenant's payments.