My Mother died in 2019, leaving her investments to my Father. He died in 2020. I received a 1099 for CD interest that declared my Mother as the recipient. I would have expected them to issue this to the new holder, my Father, or to me, the beneficiary.

My Mother died in 2019, leaving her investments to my Father. He died in 2020. In 2021 I received a 1099 for 2020 CD interest that declared my Mother as the recipient. I would have expected them to issue this to the new holder, my Father, or to me, the beneficiary.

The bank says they cannot change the recipient 1099, even though I sent them death certificates after each death. The interest was $1300. Can I ignore it?

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1 Best answer

Level 15

Feb 22, 2021 7:29:24 AM

@purplehiss wrote:

Can I ignore it?

No, you cannot ignore it.

In a general sense, the income is income in respect of a decedent and needs to be reported by the individual or entity that received the income. if that individual was you, then you need to report the income on your return.

Level 15

Feb 22, 2021 7:26:36 AM

If the 1099 was issued with your mother’s social security number and she died years ago I would ignore it since I assume her estate has already been settled.

Level 15

Feb 22, 2021 7:29:24 AM

@purplehiss wrote:

Can I ignore it?

No, you cannot ignore it.

Level 2

Feb 22, 2021 8:24:54 AM

Thanks for your response.

I figured I would file the income with my return, since the CDs ultimately paid the principle and interest to me at the end of 2020. I just don't see how the IRS cross check will balance my Mother's old SSN to mine. I expect they will generate an exception, and I will get an 'opportunity' to explain it all to the IRS.

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My Mother died in 2019, leaving her investments to my Father. He died in 2020. I received a 1099 for CD interest that declared my Mother as the recipient. I would have expected them to issue this to the new holder, my Father, or to me, the beneficiary.