Executor was told prior to filing form 1041, the IRA the deceased had which named NO bene's, was not part of the Estate and was to be paid to the closest relative. Well the Bank the IRA was at was wrong. The IRA gross funds were paid out under the Estate's EIN. The Bank will probably issue a form 1099-R for tax year 2015 in early 2016 but I probably don't want to wait that long and file an amended form 1041 by using the original form 1041, check the amend box and add the gross IRA amount, correct?
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Based on your post it appears the income is for tax year 2015 and not tax year 2014?Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Did the estate have a fiscal year? If so, from when to when?Comment
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If the income was received before April 30, 2015, you can amend and include it in the last 1041 filed. If paid after that date, do a current fiscal year 1041. Did they withhold taxes?Comment
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So, if you show it distributed to the heir(s) on line 10, Page 2, it should produce a refund to the Estate --- which you will then have to deposit, and distribute THAT to the heirs in the proper proportions. Also, the problem with amending the original return is that you will have to paper-file it, which would require a copy of the 1099-R showing the withholding. So best option is to file a current fiscal-year return using date of 3/1/15 to (?) whatever date it is that you will distribute the money. That terminates the estate if nothing is left. You will still need to keep the bank account open to deposit the tax refund. (PS: Amt shown as income AND distributed to heir(s) on the 1041 is the gross proceeds, not the net after withholding.)Last edited by Burke; 07-16-2015, 04:50 PM.Comment
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