1099-int For Deceased

[Finin]

s About Taxes)/1099-INT for deceased Advertisement Expert: Chea Romine, CPA - 1/23/2011 A cash-basis taxpayer died in late 2009 and left a CD to a beneficiary with a POD designation.  The beneficiary presented the bank with the death certificate and had the CD put in his own name with the same bank in early 2010.  Nevertheless, a 1099-INT was sent to the deceased for the short time in 2010 before the beneficiary had the CD placed in his own name.  The final 1040 income tax return for the deceased was timely filed in April 2010 for tax year 2009, the year of death.

I don't think the beneficiary has to file a 1041 because this is the only income in respect of the decedent and the amount is less than $600.  If the bank refuses to issue a corrected 1099-INT in the beneficiary's name for the amount of income accrued on the CD in early January, how will the beneficiary report the income on his own return so that things are properly matched for 1099 reporting purposes?

[Chung-Ho]

s About Taxes)/1099-INT for deceased Advertisement Expert: Chea Romine, CPA - 1/23/2011 A cash-basis taxpayer died in late 2009 and left a CD to a beneficiary with a POD designation.  The beneficiary presented the bank with the death certificate and had the CD put in his own name with the same bank in early 2010.  Nevertheless, a 1099-INT was sent to the deceased for the short time in 2010 before the beneficiary had the CD placed in his own name.  The final 1040 income tax return for the deceased was timely filed in April 2010 for tax year 2009, the year of death.

I don't think the beneficiary has to file a 1041 because this is the only income in respect of the decedent and the amount is less than $600.  If the bank refuses to issue a corrected 1099-INT in the beneficiary's name for the amount of income accrued on the CD in early January, how will the beneficiary report the income on his own return so that things are properly matched for 1099 reporting purposes?

[Trumbald]

Hi Ellen,

If the interest is small enough then no 1041 needs to be filed that is correct.

I would report on the beneficiary's return the exact amount of the 1099 in the beneficiary's name.  This should solve the matching issue.  

Hope that helps.