This response appears to contradict the advice shown below (see link for full post).
Wouldn't this be considered nominee income, triggering the need to file a new 1099 with the IRS?
My situation:
- Mother passed away in 2021. Final tax return for her was filed in April 2022.
- Received a 1099-INT from a bank for 2022 tied to my mother's SSN. The bank account is under a family trust, which is also tied to her SSN. The trust became irrevocable when she died (we obtained an EIN for the irrevocable trust). I'm filing a return for the trust, but this 1099-INT uses her SSN and not the EIN for the trust. My brother and I are co-trustees.
Like the discussion below, wouldn't the 1099-INT income be considered nominee income for the irrevocable trust, triggering the need for me to file a new 1099 with the IRS?
Thanks.
Employee Tax Expert
March 15, 2021 7:12 AM
Nominee Actions/Returns:
Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners.
File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)
- On each new Form 1099, list yourself or the original Payee as the payer and the other owner, as the recipient. On Form 1096, list yourself or the original Payee as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.
The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here:
Split the amount as needed and enter only the necessary portions on the appropriate returns.
