1099 issued to deceased instead of estate

[kamckinley]

If a deceased person receives a pension check after they have passed I understand that an estate income tax return is necessary (if the amount is over $600).

What do I need to do if the 1099 was issued to the deceased SSN instead of the EIN of the estate? For example, total pension received for the year was $10,000 and 1099R was issued to deceased SSN for $10,000. Howver, $2,000 of that amount was actually paid after the person passed away.

So $8,000 goes on final 1040 and $2,000 goes on 1041.

But what about the incorrect 1099R? I'm assuming I can note it as nominee income on the final 1040, but it's too late to give the estate a 1099R for the $2,000. Or at least to do so without being penalized. Is it necessary to give the estate a 1099R or is it just necessary to report the correct figures on each return?

What would you do? Thank you!

[ATSMAN]

If a deceased person receives a pension check after they have passed I understand that an estate income tax return is necessary (if the amount is over $600).

What do I need to do if the 1099 was issued to the deceased SSN instead of the EIN of the estate? For example, total pension received for the year was $10,000 and 1099R was issued to deceased SSN for $10,000. Howver, $2,000 of that amount was actually paid after the person passed away.

So $8,000 goes on final 1040 and $2,000 goes on 1041.

But what about the incorrect 1099R? I'm assuming I can note it as nominee income on the final 1040, but it's too late to give the estate a 1099R for the $2,000. Or at least to do so without being penalized. Is it necessary to give the estate a 1099R or is it just necessary to report the correct figures on each return?

What would you do? Thank you!

I have done it 2 different ways in the past and both work:

1) If there is time to get a corrected 1099-R the personal rep of the estate can contact the issuer and get a corrected 1099-R for the amount paid prior to death and a new 1099-R with the estate EIN for the amount post death.

2) If time is of the essence apportion the 1099-R for the amounts pre and post death and report it on 1040 and 1041, making a note in the return of what you did. My software allows statements and pdf attachments.

If there is a IRS notice it is fairly easy to explain.

[kamckinley]

Thank you, this was very helpful!