How does the IRS link a Decedent to a Trust?

[trust812]

OK, this may be a stupid question but when someone dies and a Revocable Trust becomes an Irrevocable Trust and a new EIN is issued how does the IRS link the Decedent’s 1040 to the Trust’s 1041 since the 1041 has the new EIN but not the Decendent’s Social Security Number? Can’t go by the name only because for example there might be a lot of a John Does who died and John Doe Trusts.

Along these same lines, my late father had an IRA and the Trust is the sole beneficiary for the inherited IRA. Last year 2024 when my father died I filled out paperwork with Charles Schwab. Since my father didn’t take an RMD lain 2024  the Trust Inherited IRA took his RMD and Schwab issued a 1099-R. How would the IRS know that the Trust took the RMD for my late father in 2024 when only the Trust EIN is on the 1099-R and not my father’s Social Security number? Does Schwab issue some other paperwork to the IRS beyond the scene in addition to the 1099-R to link my father’s IRA before he died to the Trust  Inherited IRA?

Thanks! 

[MaryK4]

There is not a system in place to identify 100% such transitions.  Because the United States is a self-reporting system, there are many issues like this that get missed- either by accident or on purpose.  

With the computer systems, the IRS has been able to track more- for example, they can see when there is an RMD one year then it "disappears" or the computer might be able to trace the accounts when the final return is filed but looking at the 1099-Rs reported by Schwab (because Schwab would issue with the new tax id number).  

[trust812]

Thanks for your quick answer. That’s unbelievable that there is not such a system in place considering that computers have been around for years! I am a former computer programmer so I always think like one and ask questions. 

[trust812]

Right on the Decedent’s final 1040 it asks whether an RMD was taken for the year but to my recollection on the 1041 it doesn’t ask if the Trust is taking an Inherited IRA RMDS for a Decedent. I would think this question should be asked.