ESTATE TAX RETURN WITH 1099-R'S

[TSW]

Client passed away 2 years ago, the family opened an estate/trust for him with his rental property. However,  3 1099-R's were sent to the deceased tax payer in 2023 under his social security number, rather than the estate EIN. They deposited the funds into to the trust, there were some federal taxes with held. How is this to be entered?

[Accountant-Man]

1) Is it an estate or a trust? It cannot be both.

2) When I receive a 1099-R with an estate or trust as the owner(bad tax planning!) I enter the amount as Other Income on the 1041. Withholdings go on the withholdings line for 1099s.

3) If you can get the income passed through you can save a lot of tax money. BUT YOU MUST FILE TO GET THE WITHHOLDINGS REFUNDED. Withholdings cannot be "passed through" to beneficiaries. (Estimates can be transferred to beneficiaries.)

[sjrcpa]

"3 1099-R's were sent to the deceased tax payer in 2023 under his social security number,"

Someone needs to notify the Payors of the death, and get the accounts transferred to the beneficaries, or the estate if none were named.