How to adjust 1099-DIV, 1099-B, and 1099-INT for Fiscal Year Estate in Turbotax Business

[dccolorado]

I am preparing the 1041 for an estate with a fiscal accounting period of 12/26/21 to 11/30/22 so have to adjust the calendar year 1099s from the financial institution to exclude December 2022 income.  There was no income from the period 12/26/21 to 12/31/21 to adjust.  How do I do this in Turbotax?  I have already had to make quite a few adjustments to the 1099-B because the payer (1) issued it under decedent's SS# rather than the estate EIN, (2) the cost basis is the original rather than the stepped up basis and (3) they showed a couple of short term losses when they should be long term for the estate (my understanding is that they are automatically considered LT if the asset was required from the decedent.).  I have used the proper error codes for these.  Does there need to be some type of reconciliation submitted with return between the 1099s and amounts reported?  I have never done a fiscal year return before.  

[tagteam]

There is no "reconciliation" that will need to be submitted. 

You can use Forms Mode to indicate that the income reported is for the fiscal year period and not the calendar year (i.e., it excludes December of 2022). 

Frankly, you can report the income through 11/30/2022 and then answer accordingly if you receive a letter from the IRS questioning the way you reported the income (which is unlikely, but justifiable with an entity reporting on a fiscal year basis).

[tagteam]

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@dccolorado wrote:

.....There was no income from the period 12/26/21 to 12/31/21 to adjust. 

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I re-read your question after I thought more about the above-quoted statement and it raises an issue.

If the estate had zero income for the period 12/26/21 to 12/31/21 period, then no return was due for the 2021 tax year. That being the case, why are you preparing a fiscal year 1041 ending 11/30/22 rather than a 2022 calendar year 1041?

[Mike9241]

so your reporting 1/1/2022 to 11/30/2022. what you need are the December activity statements you take the 1099's and then remove the December activity. Since the 1099's have the wrong id number the IRS will probably not make an inquiry to the estate. There may not even be a reason to use adjustment codes becuase of the wrong id #.  had you asked much earlier, I would have suggest contacting the broker to correct the reporting.  the issue may be that the 1099s were issued the decedant's SSN. so there may be an inquiry. The  1041 is late. with an 11/30 year end it was due 9/15/2023