Yes, Form 1041 is filed and Form 1099-C is included with the estate return. The Form 1099-C would be part of the estate tax return because it was received after death.
The fiduciary of a resident estate or trust must file a South Carolina Fiduciary Income Tax return, SC1041, if the estate or trust: is required to file a federal Fiduciary Income Tax return for the taxable year. had any South Carolina taxable income for the taxable year. had a beneficiary who is a nonresident.
You can nominee the 1099-C to the estate.
Nominee Returns. This is how the IRS knows what you are doing.
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 your deceased mother as the payer and the other owner (estate), as the recipient. On Form 1096, list your mother 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:
As indicated, this could be complex and seeking advice from an estate tax professional would be best by our tax expert @RobertB4444.
@rswelter
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