Preparing 1099 for Nominee interest and dividends

[Bmck345]

I am preparing the final 1040 for a deceased relative and the 1041 for the Estate. I have created the Nominee deduction on the 1040 for the portions of both interest and dividends that were received after death, but included in the deceased 1099's, and need to create and file the nominee 1099's with the decedent as issuer and the estate as recipient. Can this be done and filed electronically with the IRS using Turbotax Business, which I will use for the 1041, or must I get the forms from the IRS and file manually? Also, since we are passed the due date for filing 1099's, will I be subject to penalties for late filing? The Estate will be on a fiscal year, not calendar year, if that matters.

[PatriciaV]

Yes, you should be able to create and file Form 1099 using TurboTax Quick Employer Forms (QEF), a free service we offer to customers who use TurboTax Business. There is a potential late filing fee of $60 (for 2024 forms) if you file within 30 days of the original deadline of January 31. The penalty increases if you file beyond that date.

Access QEF through the link in the TurboTax header or sign in here.

See also: IRS Information return penalties.

[Bmck345]

I filed both 1099-Int and 1099-Div using Turbotax business, but both were rejected by the IRS. The reason on the email is that info doesn't match IRS records. I have verified that the names and TIN for both the deceased and the Estate are correct. 

The only possible issues I can see are:

1. The address for the deceased has changed following her death. I am using my address for filing purposes.

2. On the SS-4 from the IRS assigning the EIN, there is a second line under the name of the estate shows my name followed by Executor. The software, however, does not allow a second line to be entered.

Could either of these be the cause? If not, how can i proceed?

Thank you!

[PatriciaV]

Any difference in the TIN or address may cause the IRS to reject the submission. To save time, you may wish to mail the 1099's and attached the rejection notification. The transmittal is Form 1096 and the address for your area is listed on the front of the form.

You also have the option to call the IRS at 1-800-829-1040 for individual tax returns or 1-800-829-4933 for business tax returns.

[Bmck345]

Thank you.

I think I will try resubmitting with the deceased's old address and see what happens.