My uncle's executor received a 1099-R. As one of three beneficiaries, I received a third of the inheritance. Who is responsible for reporting the 1099-R and paying taxes?

[SabrinaD2]

If your uncle's executor received a 1099-R and you are one of three beneficiaries, here's how it works:

1. Executor's Responsibility: The executor reports the total amount from the 1099-R on the estate's income tax return (Form 1041). The estate pays any taxes due.
2. Beneficiaries' Responsibility: If the distribution was passed directly to the beneficiaries, the executor issues a Schedule K-1 to each beneficiary. Each beneficiary, including you, reports their share on their individual tax returns and pays any taxes due

For more details, check out the TurboTax's resources.

[anthony___]

Thank you so much @SabrinaD2  This definitely helps a lot but it also raises more questions. I'm pretty sure the 1041 and K-1 were not issued.  So, to clarify, I should not be doing anything about this 1099-R? 

If I might add to the first question, I'm looking at two checks right now. One is from the 1099-R / his IRA and the other is from the sale of the home and as well as another investment account. I've received no IRS related paperwork in regard to any of this.  

Actually, the question I should be asking is what happens if other people screw things up and I don't file properly?  

[dmertz]

What's not clear in SabrinaD2 reply is that the executor does only one of those two possibilities.  Normally it would be the second one, but you need to confirm that with your uncle's executor.

If the income is passed through to you, you'll want to make sure that you have sufficient tax withholding from other sources or that you pay sufficient estimated taxes to avoid a tax underpayment penalty that could result with the addition of this income to your taxable income.

If your uncle died sometime after January 2024 , it's possible that your uncle's estate is using a fiscal tax year that would result in this being 2025 income rather than 2024 income.  Again, you'll need to find out from the executor the end date of the estate tax year that will include this income.  The income is reportable on your tax return for the year that contains the end-date of the estate's tax year.

[dmertz]

"what happens if other people screw things up and I don't file properly?"

You'll file your individual tax return based on what ever you receive on a Schedule K-1 (Form 1041).  If the estate files incorrect tax return, they'll need to amend.  That that amendment changes the Schedule K-1) reporting, you'll likely need to amend as well.