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incorrect 1099 INT which the broker will not correct

gn
Level 3

an individual who was deceased in 2018 was given a 1099 INT in 2019 to their individual tax id number for the interest income when it should have been recorded to their estate tax id number. The bank has all the information but refuses to correct the 1099 with the correct tax id number for the estate. I'm not sure what do other then include the income on the estate tax return and attach a letter describing the issue. The final return was already filed in 2018 for the decedent so I don't know of any reporting other to wait for the IRS letter for non filing. Has anyone had this experience before and what was the proper way to handle it? I would also like to file a complaint about the broker for refusing to do this any idea if there is an IRS complaint line for this?

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Accepted Solutions
BobKamman
Level 14

IRS knows the taxpayer died, and when.  You will not receive a letter.  The federal government taxes income, not pieces of paper.  If the interest was paid to the estate, then report it on Form 1041 if one is required.  

You start out complaining about a bank and end with complaining about a broker.  We understand that most banks don't want to be in the banking business these days.  With low interest rates, there is little profit in it.  Instead, they want to sell investment and insurance products to their customers.  If the account balance is high enough, the teller is required to direct the customer to the commissioned salesperson in the corner office.  The salesperson has a winning personality but makes no money from quotidian tasks like correcting 1099 forms.  If you have any monetary damages, file a complaint with FINRA.  But if you are merely annoyed, educate your clients about how deregulation of the financial industry may be hazardous to their health.  

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7 Replies 7
IRonMaN
Level 15

Before you call in the FBI, CIA, and the Girl Scouts, was the bank or broker timely notified of the change in ownership?

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
gn
Level 3

Yes, of course they would know because an estate account was created after death, so there is no excuse other they just don't want to correct the mistake. The account has been closed since and the assets distributed to the beneficiaries, there is no excuse.

And btw a box a girl scout cookies would hit the spot today!

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abctax55
Level 15

Just because the bank knew an estate account was opened doesn't mean they knew the *other* account was related.

Before calling out the National Gaurd ;-), how much money are talking about?

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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IRonMaN
Level 15

I just got another shipment of Thin Mints in yesterday.  I think it is easier to beat an addiction to meth than it is to beat an addiction to Thin Mints 😋

 

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
BobKamman
Level 14

Well, you certainly don't mints your words about addiction.  Did the GSA include a 1099-MINT?

“Worry is a word that I don't allow myself to use.”

Dwight D. Eisenhower

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BobKamman
Level 14

IRS knows the taxpayer died, and when.  You will not receive a letter.  The federal government taxes income, not pieces of paper.  If the interest was paid to the estate, then report it on Form 1041 if one is required.  

You start out complaining about a bank and end with complaining about a broker.  We understand that most banks don't want to be in the banking business these days.  With low interest rates, there is little profit in it.  Instead, they want to sell investment and insurance products to their customers.  If the account balance is high enough, the teller is required to direct the customer to the commissioned salesperson in the corner office.  The salesperson has a winning personality but makes no money from quotidian tasks like correcting 1099 forms.  If you have any monetary damages, file a complaint with FINRA.  But if you are merely annoyed, educate your clients about how deregulation of the financial industry may be hazardous to their health.  

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gn
Level 3

That's what I was hoping that the IRS can tell the difference it gets picked up on the 1041 and most importantly no future IRS letters to annoy the family as they already have enough to deal with.

I pretty much agree with your view of the banking system, and this is a broker and a bank under 1 umbrella as most of the larger institutions are now. No branches no sales person no offices just call centers where they keep transferring you until you give up or eventually get to a person who will say sorry but we will not do that. Unfortunately its not the future of banking its already the present  

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