EE bonds

[rona77]

Client cashed deceased mom bonds at 34K. The bank issued a 1099int, but bank procured a tax id for mom's estate. client feels she should have to pay 11K in taxes as 1099 is in estated name and tax id

[TAXNJ]

Not totally clear what you are saying if estate or beneficiary should pay?

But you might consider doing a “search“ on this website for this topic.

https://forum.thetaxbook.com/forum/d...ds?view=thread

[ATSMAN]

If the bonds were in the deceased mom's name when it was cashed then the 1099-int is issued with the decedent's estate ID

[TAX4US]

I had this very problem. Bonds cashed in. Form 1099 came in estates name and #. Put them on Form 1041 and passed out to heirs of record through DNI. Went round and round according to what law said and what eventually happened. Heirs got distribution checks but paid tax on their share of the income through the DNI process.

[Burke]

That is the correct treatment. The money should have been distributed to the heirs from the estate by the administrator. After accounting for income and expenses on the 1041 tax form, the K-1(s) will pass through the net income to whomever the beneficiaries are for reporting on their tax returns in their proportionate share. I am going to surmise that the OP meant to say "client feels she should [NOT] have to pay....tax as 1099 is in name of estate and id......" Either estate pays or beneficiaries pay, but it is taxable income to start with. And you don't want estate to pay usually, as that is way more expensive.