- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Unexpected 1099-INT after final 1041 was filed.
Hello, as trustee, I completed a fiscal year 1041 for my mother's trust, so it ended on 8/31/2021, and I did a first and final 1041 at that time. Well, I had a big surprise in the form of a 1099-INT for 2022 today, from a bank where I *thought* all accounts were closed. It seems my mother had an account that I did not know about, and even though I told this bank I needed to close and distribute all money to beneficiaries, they failed to see this separate account. Note that it was in the trust, at least, so no probate worries. It's around $100K, and it paid $375 in interest in 2022. I quickly pulled the money today and have already distributed it between myself and my brother - the beneficiaries issue is fortunately not complicated as there is just the two of us. But now what....how to handle this unexpected interest in terms of taxes? Another 1041 even though I filed what I thought was the final for fiscal year ending 8/31/2021?
To complicate things further, my mother died in 2020 before receiving her 2019 tax refund, which was delayed due to Covid backlogs at the IRS. Finally.....in 2022, I received her substantial 2019 tax refund and interest on top of it. The interest amounted to about $280. So, I also received a 1099-INT from the IRS for 2022 because of interest on a refund that was owed for 2019.
From the taxes perspective, now do I even handle this? Do I have to generate K-1s for me and my brother and pay it through our taxes? The total unexpected 1099-INT between the unknown bank account and the IRS refund will be about $650 or so total. There is no other income - as I mentioned, I had closed everything out for the estate and thought I had distributed all funds as of 8/31/2021.
Thank you for your help.