I have a question about Nominee Dristributions and related 1099-INTs.
Background: Our father died in August 2023 and then mom died in December 2023. They had 10 accounts with Synchrony Bank (1 High Yield Savings and 9 CDs, all jointly owned but the primary SSN was my father’s). Mom became sole owner of all 10 after dad’s death plus she purchased two additional CDs under just her name/ssn before her death. As the Personal Representative named in their Wills (and Successor Trustee named on their Trust) I notified Synchrony of her death and all 12 accounts were paid out to the listed Beneficiaries on 12 Jan 2024 (some split between me and 3 siblings, some going solely to each of us, and the savings account went into the Trust account). Their final return was filed last spring.
Now (Jan 2025), Synchrony sends me 1099-INTs for all 12 accounts; mom is the person listed as Recipient on all 12 although only the 1099-INTs for the two additional CDs have her ssn…the other 10 that she co-owned w/dad have his ssn as Recipient’s TIN. Total Interest from all is $1585 but that actually went to beneficiaries when the accounts were closed as the interest reported was credited to the accounts in on 8 January 2024; technically this was Income in respect of a Decedent.
I feel each of us siblings should receive a 1099-INT showing Nominee Distributions since that interest was paid to us in January 2024 when the accounts were closed. Right? FYI, by looking at each account I can tell how much interest income went to each of us. This interest never went to mom nor did it go to the Trust.
If so, can someone please give me specific guidance on how to fill-out the 1099-INT and 1096. I understand the person who received the interest is listed as Recipient but do I list mom as the Payer?
Do I list her ssn as Payer’s TIN for all 12 accounts or will I need to essentially do two 1099-INTs for each recipient due to dad’s ssn being on most of them (i.e. one 1099-INT to each of us for the accounts with dad’s ssn and one for those under mom’s ssn)?
Do I list the same account number as is listed on the original 1099-INTs?
Lastly, since their final return was submitted in 2024 (for their year of death, 2023), I don’t think I can/should amend that return because this is interest income from 2024. Additionally, I don’t know if I can/should list it anywhere on the 1041 I’ll submit for the Trust this year since it had nothing to do with the Trust (it will be the final 1041 since all funds from the Trust have been dispersed)?
For the 1096, should I list mom’s info under Filer’s name/address with me as the person to contact in addition to signing the form? Or, am I the Filer, person to contact, and person who signs the form?
