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Financial Planning / Tax Strategies
|Subject: Re: 1099 R overstated||Date: 5/19/2010 9:53 PM|
|Author: ptheland||Number: 110462 of 121794|
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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