1041 Questions

[John3cpa]

Taxpayer died end of Dec 2009, had all investment assets in 2 revocable trusts from which 2 irrevocable trusts were to be established. There were no probatable assets. This year the spouse brings in all the 1099's (of which there are many) most of which are in the the Soc Sec number of the deceased, some in the EIN of one of the new irrevocable trusts and none in the EIN of the other irrevocable trust. Explanation "we didn't get around to transferring the assets until late".
(An Atty filed the 706 which has been finalized by IRS).
Seems to me I must obtain a new EIN for the estate and file a 1041 including all the income reported under his social sec number, k1's to each irrevocable trust, then 1041's for the two irrevocable trusts.
Or is there another way??

[Maribeth]

Taxpayer died end of Dec 2009, had all investment assets in 2 revocable trusts from which 2 irrevocable trusts were to be established. There were no probatable assets. This year the spouse brings in all the 1099's (of which there are many) most of which are in the the Soc Sec number of the deceased, some in the EIN of one of the new irrevocable trusts and none in the EIN of the other irrevocable trust. Explanation "we didn't get around to transferring the assets until late".
(An Atty filed the 706 which has been finalized by IRS).
Seems to me I must obtain a new EIN for the estate and file a 1041 including all the income reported under his social sec number, k1's to each irrevocable trust, then 1041's for the two irrevocable trusts.
Or is there another way??

File the two 1041's for the irrevocable trusts. Indicate where appropriate on each trust that the income was reported under a different EIN. For example under interest income: Chase Bank reported under SSN XXX-XX-XXXX.

If there is a lot of activity, you can create a spreadsheet to attach to the relevant 1041 that shows the income and the EIN's that the income was reported under.

Do not file a separate 1041 for the estate -- all the reporting, with the facts you've given, needs to be on the two trusts.

Keep it simple. This happens all the time; the IRS is aware of it; don't let the incorrectly reported 1099's drive your workload.

Maribeth

[Burke]

I agree 100%. Make it work.