Final Returns for deceased client

[momma1]

A final return was filed for a deceased client. A 1099 received after filing, but the 1099 was issued not in the client's name but to the estate of.  Do I amend the file return or do we have to file an estate form.

This 1099 showed taxable amount as well as federal withholding.

[Just-Lisa-Now-]

Was the 1099 for the same year they died or was it issued for the following year after death? 

If it was something that happened (you dont say which type of 1099 it was) after they died, a 1041 will be needed.

[momma1]

The 1099 was issued the year after the death

[Just-Lisa-Now-]

You'll need to apply for an EIN for the estate and file the 1041.   

[qbteachmt]

"The 1099 was issued the year after the death"

Lisa asked which year the form is for; which tax year is on that form. Not when the form was issued, but what is it for? If it is for a tax year that was filed, perhaps there simply needs to be an amendment. Or, perhaps you already included that in the filing.

A 1099 arriving in 2022 shows it is for 2021, for instance.

[BobKamman]

Year of death.

Year of 1099.

Type of 1099.

Amount of income.

Amount of tax withheld.

"I've Got A Secret" was a fun TV show, you can still watch it on YouTube, but let's not play it here.   

[momma1]

Good morning,

The year of death was 2020

The 1099R was dated 2021. Distribution code 4, 

Gross distribution $49,239.00 Taxable amount $49,179.00.

Federal Tax Withheld $4,923.90 - State Tax Withheld $2092.66.

Final Tax Return for individual filed 2020

No Estate Tax has ever been filed.

How do I file this 1099R?

[Just-Lisa-Now-]

You'll need to apply for an EIN for the estate, then file the 1041. Did the beneficiary get the money or where is the money now?

[sjrcpa]

It is included on the Estate 1041.

Then you need to know what happened to the money. Still in decedent's/estate bank account?

Distributed to beneficiary(ies)? If so when?

[BobKamman]

If the funds were distributed to beneficiaries in 2021, then the estate's Form 1041 would include Schedules K-1 showing how much of the income they report on their 2021 returns.  If those returns have already been filed, they will need to file amended returns.  If no distributions were made, the estate owes a lot more tax than the 10% that was withheld.  Worst possible case, I suppose, is that the funds were distributed in 2022 and no one wants to return any of it.  

[sjrcpa]

Depending on date of receipt of income and date of distribution, a fiscal year initial and final return may be feasible.

[BobKamman]

Fiscal year election has to be made on timely-filed return.  For someone who died in 2020, it's too late.  

[sjrcpa]

I believe it is made on the initial estate 1041. If there was no income from date of death until receipt of pension/IRA there was no need to file and the dates may work.