What should I do if the bank won't issue a corrected 1099 INT due to the death of the account owner?

[jtilborg]

My Dad died in June and the banks are unwilling to correct the 1099 INTs (4 of them) to divide the interest between the decedent and the Estate.  I can break out the interest between the 2 returns.  Should I modify the Schedule B of the final return and then add the interest after death to the 1041? 

[Anonymous_ · Accepted solution]

" Should I modify the Schedule B of the final return and then add the interest after death to the 1041?"

Yes, but you are actually supposed to report the entire amount listed on each 1099-INT and then enter the amount that will be shown on the 1041 as a "nonimee distribution", which is subtracted from the total amount of interest reported.

See https://www.irs.gov/instructions/i1040sb#idm140169950140816

Note that you are also supposed to send a 1099 to the IRS and the trustee (which, purportedly, is rarely done).