1099C for deceased. Final return filed. No money in estate. What do I do?

Forum|Forum|4 years ago
January 24, 2022
1 reply
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Turbotax,

I just received a 2021 1099c for my late father, who passed away in 2019. I filed his final return in 2020 and no other estate business happened in 2021. The estate is insolvent and no longer has a bank account or assets. Am I required to file another tax return or form? Thank you!

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Best answer by DMarkM1

Since you had zero assets in the estate, the estate was insolvent when this occurred. You will file form 982 with the Estate of your father's name in the name box and the EIN for the estate in the identifying number box. Here are the instructions for the form. I don't know what the indebtedness was for but I would draw your attention to the table and item "Nonbusiness Debt" for specific instructions.

Attach this completed form to a copy of the last estate form 1041 you filed, along with the 1099-C. Be sure to write COPY on the top of the estate form.

DianeW777

Level 15

The guidance for this can be found in IRS Publication 559. The IRS would require this income to be included on the return of the beneficiary. Depending on the amount and how it affects the tax return, review the information below for a request to remove the income and additional tax, if any, from your tax return. You do not file another return for your father.

Request for discharge from personal liability for tax.

An executor can make a request for discharge from personal liability for a decedent's income, gift, and estate taxes. The request must be made after the returns for those taxes are filed. To make the request, file Form 5495. For this purpose, an executor is an executor or administrator that is appointed, qualified, and acting within the United States.

Within 9 months after receipt of the request, the IRS will notify the executor of the amount of taxes due. If this amount is paid, the executor will be discharged from personal liability for any future deficiencies. If the IRS hasn't notified the executor, he or she will be discharged from personal liability at the end of the 9-month period.

NOTE: Even if the executor is discharged from personal liability, the IRS will still be able to assess tax deficiencies against the executor to the extent he or she still has any of the decedent's property.

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