Filing a first and final Irrevocable Trust return, which has $20K of royalties from Oklahoma. The Trust and the 2 Beneficiaries are Idaho residents. This is a simple trust with all income required to be distributed.
Grantor died in 2017. Trustees/Beneficiaries were not real clear what they were doing and apparently never obtained a Trust EIN (actually obtained an estate EIN, which they brought to me...), so the 1099-MISC showing the Royalties is in the name of the trust but under the EIN of the deceased grantor. There is also Oklahoma withholding on the 1099.
Obviously there is no 1040 to be filed in the year following her death, so there's no way to nominee the income from the individual over to the Trust. The trust assets were completed distributed to the beneficiaries in 2018.
So, I believe to solve their issues we need to do the following:
*Obtain a new EIN for the Trust, but if we do that EIN won't match the 1099-MISC EIN, and I'm concerned Oklahoma won't be able to release the withholding amounts, which we are planning to transfer to the beneficiaries to be applied on their personal returns.
*So I think I need to instruct Taxpayers to contact the Royalty Company and ask them to reissue a 1099 with the correct EIN before we file with Oklahoma.
I'm wondering, first of all if these are the appropriate measures, but also if perhaps there's an easier way that wouldn't require the request of a corrected 1099??
Thoughts?