My mother had investments as part of a family trust that used her SSN. She passed away in October 2021, after which the investments were held in an irrevocable trust with an EIN.
The brokerage company provided 1099-DIV forms for both my mother (in her SSN) and the trust (in the EIN) that show IDENTICAL amounts in the boxes. So I have two (2) 1099s that both show incorrect information. The brokerage company refused to issue corrected forms.
QUESTION #1:
What's the proper way to address this since the amounts need to be divided amongst the 2 returns?
Option A:
-Report the full amounts on both returns (my mother's and the trust)
-Make the necessary adjustments as negative numbers on both returns
-File a 1099-DIV (along with 1096 form) from my mother to the trust
-File a 1099-DIV (along with 1096 form) from the trust to my mother
Option B:
-Same as Option A, except I would only file 1099s/1096s from my mother to the trust (assuming the IRS will be able to follow the money trail).
Option C:
-Other approach?
QUESTION #2:
We also received 1099-B forms for both my mother and the trust. No stocks were sold while my mother was alive, so I adjusted the amount on her personal return and indicated the entire proceeds were received as a nominee. I did not reference the trust or EIN on my mother's return. The correct cost-basis was applied within the trust's return.
Do I need to send any 1099-Bs and 1096 forms between my mother's return and trust return for this income? The IRS instructions say this is required for 1099-DIV forms, but don't mention it for 1099-Bs. Is there anything else I need to do here?
Thanks.
