IRS knows the taxpayer died, and when. You will not receive a letter. The federal government taxes income, not pieces of paper. If the interest was paid to the estate, then report it on Form 1041 if one is required.
You start out complaining about a bank and end with complaining about a broker. We understand that most banks don't want to be in the banking business these days. With low interest rates, there is little profit in it. Instead, they want to sell investment and insurance products to their customers. If the account balance is high enough, the teller is required to direct the customer to the commissioned salesperson in the corner office. The salesperson has a winning personality but makes no money from quotidian tasks like correcting 1099 forms. If you have any monetary damages, file a complaint with FINRA. But if you are merely annoyed, educate your clients about how deregulation of the financial industry may be hazardous to their health.
