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Yes, financial institutions that file Forms 1041 as a trustee or fiduciary are required to e-file. This requirement is explicitly stated in the retrieved information from the IRS Publication titled "Publication 1437" from 2022, which mentions that "The financial institutions that file Forms 1041 as a trustee or fiduciary are required to e-file." This directive aligns with the broader IRS efforts to increase the efficiency and accuracy of tax return processing through electronic filing systems.
Sources:
Instructions for Form 1041-N (12/2022)
Publication 1438
Instructions for Form 1041 and Schedules A, B, G, J, and K-1 (2023)
Instructions for Form 1042-S (2024)
Publication 1437
Instructions for Form 990-PF (2023)
Instructions for Form 990-EZ (2023)