So a client of mine receives a 1099B and 1099C for significant money. As does his 2 brothers.
Apparently a brokerage account held by their father was missed when he passed in 2003. The estate was closed well before 2008. An attorney did a 706, I did all the 1041's. In 2018 NYS notified them of this money and distributed the money out.
Now the 1099's are in the ID number of the estate BUT are in the exact amounts paid to each beneficiary. So the $50,000 distribution produced 3 1099B's and 3 1099 misc "other income" instead of 2 1099's. All 1099's are ID's to the closed Estate.
Would you file a 1041 even though it was closed 10 years ago or let each beneficiary file on their own return of course risking an IRS inquiry or should I simply file a 1041? I am leaning on filing a 1041. Crazy but I purged all my files from that far back on this account so I have no copies of anything form the estate in 2008.
What say the wizards on Taxprotalk?
Thank you for any thoughts!