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Interesting scenario

PATAX
Level 15

Client passed away in December of 2020. I prepared the final 2020 individual income tax returns for him, which his daughter took care of. Daughter went through an attorney to take care of the inheritance or whatever else had to be taken care of. Daughter came to me this year to do her taxes for 2021, and she also has a few items that were reported for her father in 2021: About $350 in dividends, $60 in interest, and about $200 on a K1 LLC Marcellus Shale, all of these were reported on 2021 tax forms under the social security number and name of the deceased father. Obviously I cannot prepare a 2021 income tax return for the father since he died in 2020. Client contacted the attorney and he basically said she should contact a tax professional. Should I pick it up on the daughters return? I do not get involved with Estates or trusts, as I am not an expert in that field,  and if some type of estate or trust tax form has to be prepared, then she will have to go somewhere else for her father for that. Thanks in advance...

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Accepted Solutions
IRonMaN
Level 15

You aren't talking a lot of dollars, so if the daughter is the only kid in the picture, you could just dump it on her return and tell her she needs to get the accounts updated to her name.  That is where it would most likely end up with a 1041 anyway.  If there are more kids, you might want it done the correct way and have someone prepare the 1041.


Slava Ukraini!

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3 Comments 3
IRonMaN
Level 15

You aren't talking a lot of dollars, so if the daughter is the only kid in the picture, you could just dump it on her return and tell her she needs to get the accounts updated to her name.  That is where it would most likely end up with a 1041 anyway.  If there are more kids, you might want it done the correct way and have someone prepare the 1041.


Slava Ukraini!
PATAX
Level 15

Thanks Iron Man, I appreciate it.

IRonMaN
Level 15

You betcha!


Slava Ukraini!
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