My Dad died in 2015. The bank filed his 2016 1099-INT under his SSN although my Mom was the one who received the money. How do we handle this?

[tuxaby]

My Dad died in 2015.  He had CDs in his name and some CDs in my Mom's name although my Mom and Dad were both the trusts on the account.  My Mom, as the widower and trust received the interest from the CDs.  The 1099-INT received had my Dad's name and SSN on it - they filed it under him.  Since was not alive at all in 2016 we are filling singly for my Mom.  How do we go about doing this?  Are we allowed to file the INT as my Mom or do we have to request the bank to make a correction.  They said this could take several months so we would need to follow an extension.  What should we do with this?

[ToddL · Accepted solution]

Since your mother received the funds, she should report it on her 2016 tax return as a separate 1099-INT.  It is difficult to get a corrected 1099-INT, and would definitely take time.

The IRS may send out a letter later this year asking for an explanation. You can reply with a brief explanation of what happened and that the income was reported and tax paid by your mother as his surviving spouse.

(I use the term "may send" because the IRS records should show him as deceased with a final return already filed).