BobKamman
Level 15

The withholding on the IRA was voluntary, so someone screwed up.  Yes, the refund goes to the estate, but the K-1 from the estate's 1041 should not show more than the actual cash distributed to the mother (the net paid, not the gross).  She pays tax on that now -- she still has the money, right? -- and then on the withholding when it is distributed to her this year.