1099-R for deceased

[Rainman1966]

Just looking for a general opinion.  Client died in 2022.  The surviving spouse has not changed one of the deceased husbands IRA's to her name so the 2023 1099-R is coming under the decease spouse's SSN.  Only a $5000 distribution.  Would you report this amount on the surviving spouse's tax return and just attach a note to the return.  Unfortunately this is quite a repetitive issue as my client base continues to age.

[IRonMaN · Accepted solution]

It's April 13th so I wouldn't hesitate to just plop it on her return.

[BobKamman]

What I find interesting is that you refer to the deceased as "client," but the widow only as "surviving spouse."  I hope in time you come to consider her a client also.  Maybe for your approval she needs to clean up her act by closing the IRA account.  I have already mentioned elsewhere that we tax income, not pieces of paper, so I won't say it again.  She got $5,000 income.  To avoid fraud, put it on her return.  It's not even a situation where document matching will generate a deficiency notice, because IRS has been informed of the death.  If there was tax withheld, IRS might ask about that in a year or so.  They don't match all the 1099 withholding reports until much later in the year.  

[qbteachmt]

"She got $5,000 income."

I read that as "only $5,000" as if that is immaterial.

[Accountant-Man]

Since the withholding goes into the IRS account for the decedent, how will it be credited on another person's SSN and 1040?

[BobKamman]

No mention in question of withholding but we don't all have our own 1099 withholding account.    Well, OK, there's the one we set up ourselves by claiming it on a tax return, and IRS can audit that.  So they might ask for an explanation, if it's a problem.