1099-INT SS# from an estate

Question

This is income recently discovered (Unclaimed Property) attributable to an estate closed (Estate return filed) more than 20 years ago. The interest was paid in tax year 2023, when it was discovered, but the SS# on the 1099-INT was that of the decedent. The Unclaimed Property administration in the state where it was escheated originally required my SS# with the application, as the amount was to be paid to me. The complication in filing comes from the K-1. I filled that out on the Freetax site, and the amount was properly placed on the schedule B. However, that is my ss#.

The question is, how do I get the original SS# linked to mine so there aren't problems with IRS?

A 1041 appears problematic in that it requires an "Employer ID number." The estate was closed. I was thinking of just putting the original SS# with the payer name on my Schedule B, but I realize that's not according to the instructions.

Suggestions?

MJane · Answer

If the IRS is asking your husband to verify his identity, they'll contact him by regular mail, never by email or phone call. The best course of action will be to respond to the Taxpayer Protection Hotline shown on the letter he received.

He'll likely just need a copy of the filed tax return (2021), a prior year return (if you have one), and any W2's or 1099's that reported income to him for that year.

Keep in mind,  the IRS won't be able to finish processing his return until they hear from him so he'll want to take care of it as soon as he can.

chasincole1102 · Answer

My husband filed taxes 2021he has to prove his identity how can he do this

MJane · Answer

The IRS considers found money and property as taxable income, which means you'll want to make sure you declare it on your tax return.

In Publication 559, they also say "After a decedent's death, Forms 1099 must reflect the identification number (EIN, individual identification number (ITIN), or social security number (SSN)) of the estate or beneficiary to whom the amounts are payable."

I assume the money was issued to you and in your name? You may want to contact the issuer for a corrected form.

If that is not an option, you can enter the income under your SSN but choose to mail the return, rather than efile it, with a written explanation of the 1099-INT in the decedents name.

Since an estate tax return (Form 1041) is outside our scope, I am not able to advise you on that topic.