1099-R IRA distribution due to death to a dead spouse

[momona]

Wife received her dad's IRA due to his death over the years. She died in 2018. For 2019, the husband has presented the 2019 1099-R with the wife's SSN and federal taxes withheld.

Do I tell him to ask the financial institution to reissue a 1099? It seems silly to get an EIN for an estate and do a flow through for $1,585. Any suggestions?

[ATSMAN]

Technically it should go on the decedents 1041 return because that income was received after her death.

Did anyone inform the IRA custodian that she had died in 2018?

I would not include that in the 1040 return because her SS# is not going to be on the 2019 1040. It may trigger a CP2000.

It may be quicker to get a EIN for the estate, and file a 1041 unless the IRA custodian can turn it around quickly. I have had local banks and credit unions reissue corrected 1099-R within a week.

[RWG1950]

Was this distribution a pre-arranged yearly RMD, (for 2019) that was made before the custodian was notified of the 2018 death ?
IRA proceeds at death are not just "paid out".
The named beneficiary (or estate of the decedent) would have had to file a claim form & present a death certificate to receive a distribution of the proceeds.
Something does not seem right here. The spouse needs to follow up on the circumstances of the distribution with the IRA custodian.

[Burke]

I am assuming she died late in 2018, and the proceeds were not distributed timely. He could report the income on his return, but since her SSN will not be on the 2019 return, he will not get credit for the taxes withheld under her SSN. The custodian needs to reissue the 1099R (good luck), or refund the withheld taxes to the payee of the proceeds, and adjust their next withholding report to the IRS. After discussing this situation with the IRS some years ago, and I presented a case for my client in this situation to a custodian, they chose option #1.