1099's for deceased spouse

[AnnieR]

Client's husband passed away 03/07. This year she has 1099 DIV's and INT's still in his SS#. Some actually have her name and his SS#. If it were 1 or 2, it would be manageable, but in his SS alone, there are 13 of them. Can I do a nominee, report them on her return, but what can I do to keep from IRS questions a couple of years from now about him not filing a return?

AnnieR

[TAXBILLY]

Have the client notify the issuers.

taxbilly

[kcjenkins]

I'd try to get them corrected to show her SSN, but if you can't then I'd just go ahead and report them on her return, and keep copies of them and copies of her detail statements for DIV and INT, so that when she gets a letter from the IRS and/or the state, you can simply respond with his date of death, and copies showing that the income was reported on her return, as she inherited his portion of the joint accounts. Warn her that she could get a notice, sent to him, but not to worry about it.

But first, do try to get the 1099s corrected, as that will eliminate the problem not only for the 08 year, but for future years. I've seen this problem repeat itself, if the issuers are not notified, as they should have been. And the problem could get much bigger if she then sells the stock or other assets, that is generating the dividends and interest. So she needs to get this cleared up anyway. It's not just going to go away by itself.

[AnnieR]

Thanks for the answers. I'm holding off filing the return and the woman and her daughter are going to the bank tomorrow to get those accounts changed into her SSN. She said the "bank" told her she didn't have to do anything, it would be ok as it was. The lady is 84 years old and quite capable of caring for things herself, but she believed what they told her.

AnnieR