Possible nominee, when and how to send 1099s.

[davidsson]

I'm unsure if I will need to send 1099s as a nominee for decedent income for 2023.  I'm waiting for the 1099s to arrive from banks and brokerages to see if the income has already been separated between decedent and trust.

Doing some preliminary research, I see 1099s must be sent by January 31.  What if I don't have the original 1099s from the banks/brokerages in time?  Some may come by forwarded mail, which adds to the drama.

It appears I will need to send a 1099 for each bank and brokerage.  Is that correct?

Also, what it the easiest/quickest way to send the 1099s.  A form to fill out?  Online?

I looked at Turbotax and believe I understand how to separate out the 1099 income.  Time will tell.

What else should I be asking about the nominee/income splitting process?  I don't want to miss anything.

Thank you in advance!

[Anonymous_]

Online is much more efficient.

Also note the following:

Filing dates.

Section 6071(c) requires you to file Form 1099-NEC on or before January 31, using either paper or electronic filing procedures. File Form 1099-MISC by February 28, if you file on paper, or March 31, if you file electronically.

[davidsson]

OK, so timing of the file going to me by 1/31 doesn't matter.  Correct?

The important part is I need to mail or send a copies of 1099-INT and1099-DIV to the IRS by 2/28.  Correct?

Also, am I correct in believing I need to send a nominee 1099 for each financial institution/1099 I receive?

Thanks again!!

[Anonymous_]

The timing is largely irrelevant because you cannot issue 1099s as a nominee until you receive the tax reporting statements from the financial institutions (i.e., until you receive them).

However, late filing penalties would be applicable only if you could not show reasonable cause (which you most certainly can).

[Anonymous_]

You can also just send one 1099 (e.g., a 1099-INT, 1099-DIV, et al) to each recipient; no need to send each one multiple 1099-INTs, for example.

[davidsson]

So, It is acceptable to send one 1099-INT for the total of  the nominee interest income (inclusive of 5 different banks) and one 1099-DIV for the total of nominee dividend income (inclusive of 3 brokerages)?

Am I understanding this correctly?  Please confirm.

Thanks again!!

Again... I am the recipient of the 1099s as Executor & Trustee, so I only have one recipient... me.  I'll be acting as the Decedent, Executor and Trustee.

[Anonymous_]

Yes, one form; you can combine like income.