Deceased Taxpayer

[Julie]

I haven't done one like this in a long time.

Taxpayer died in November, leaving a large portfolio with stocks, CDs, and a lot of tax-free muni bonds.

I have already pulled out the dividends received after death to go on the 1041. I am not doing the 1041, only the 1040. Some of the payers were notified in time to correct the 1099s, others were not. So I already know what amounts should be taxable on the 1040.

So my question is: do I put the entire amount on the Sch B (for example), with a negative entry for the 1041 amount, or just correct the numbers on the 1040 to the pre-death amount (which does not match the 1099)?

I think I've done the latter in the past, but I'm wondering about the IRS matching...does the date of death on the front page mean they'll wait for the 1041? At the moment, I'm leaning toward the negative entry.

[GERALD]

I always use the negative approach. I like for 1009's to match, so I list what they show, then create an entry saying, "less reported by Estate of ABC, Fed ID#xx- " I've never had any problem with that.

Gerald

[zeke]

wHAT HE SAID.

Z

[Linda Mathey]

I agree with both responses above. I always match the 1099 and insert a line below saying "reported on Form 1041 under EIN #XXXXXXXX.

I have never had any matching notices. Be sure to give the information to whomever is preparing the 1041 so they are sure to pick up the correct amount of income.

[Julie]

Thanks to all for confirming my feelings in this regard. And of course I'll pass it along to the trustee/executor. I'm adding onto my fee for having sorted it all out anyway.

I agree with both responses above. I always match the 1099 and insert a line below saying "reported on Form 1041 under EIN #XXXXXXXX.

I have never had any matching notices. Be sure to give the information to whomever is preparing the 1041 so they are sure to pick up the correct amount of income.