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Subject:  Re: 1099 R overstated Date:  5/19/2010  9:53 PM
Author:  ptheland Number:  110462 of 127753

Hmm, payee was not alive to cash the checks so checks issued in error were not received by payee/decedent.

More Hmmm. Checks payable to a decedent could certainly be negotiated by the decedent's estate. So we're back to constructive receipt, but by the estate and not the decedent. I think.

And that would mean the income on the 1099 should be apportioned between the decedent's final return and the estate's income tax return. But now we're back to a mismatch between 1099s and the return, which will generally generate correspondence.

And I haven't yet thought through the repercussions of not cashing the checks on a 1041.

Sorry, I don't have any good answers.

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