COPILOT RESPONSE
I'm sorry for your loss. I'll do my best to help you with your questions about the Inherited IRAs and the reporting of your father's Year of Death (YoD) Required Minimum Distribution (RMD).
Reporting the Balance of YoD RMD: Your sister will indeed receive a 1099-R for the balance of your father's YoD RMD. This amount should be reported on your father's final tax return. The IRS requires that the final RMD be taken by the beneficiaries and reported on the decedent's final tax return.
Automatic Reporting: Fidelity will report the distribution to the IRS, but it is your responsibility to ensure that the amount is correctly reported on your father's final tax return. You may need to manually fill out the appropriate forms to report this distribution.
IRS POA and CAF Number: Since you both have IRS Power of Attorney (POA) on file and have been assigned a Centralized Authorization File (CAF) number, you should be able to handle the necessary tax reporting and communications with the IRS on behalf of your father's estate.
It might be a good idea to consult with a tax advisor to ensure everything is handled correctly and to avoid any potential penalties. They can guide you through the specific forms and steps needed to report the YoD RMD accurately.
