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.

[purplehiss]

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?

[Bsch4477]

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. 

[Anonymous_ · Accepted solution]

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@purplehiss wrote:

Can I ignore it?

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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.

[purplehiss]

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.