Beneficiaries receiving 1099’s for decedent’s distributions?
My mom died 5/28/07 at age 58. My sisters and I (three of us) are each 30% beneficiaries of her IRA. The IRA was split in October 2007. I received a 1099 for 30% of my mother’s 2007 distributions from HER account with MY SSN on it. Her advisor claims that the 1099’s for her distributions (she withdrew a large amount of money to pay her medical bills) for 2007 have to be split between the three of us. She also claims that I have to file my mom’s final taxes because she “was alive for 6 months of 2007”. I am no financial expert, but I can’t find anything in the IRS rules or the account agreement to support these two statements.
I have already moved my beneficiary IRA elsewhere, but what can I do about this? I think her advisor has no idea what she’s doing…
thanks
Permalink Submitted by Alan Spross on Thu, 2008-01-31 06:01
Since she made the distributions while still living, they are reported on her final 2007 income tax return for the period of 1/1 to 5/28/07.
Since your Mom took the distributions, I do not know why the beneficiaries should be getting 1099R forms unless they also took distributions after her death. All distributions that she took should be reported on her SSN, not yours or not the EIN of her estate.
Whoever is her executor is responsible for filing your Mom’s final return, both federal and state, if any.