I need a little guidance on preparing 1041

1. What's the best way to report income on a 1099 that was issued to decedent's SSN rather than the estate/trust EIN? Assuming that correcting the 1099 is not an option. Do I report it on the 1041? Is there a specific way to report it?

2. For some reason, the 1099-S was issued to the executor. The sale should have been reported on 1041, as part of the estate. Any recommendations?

3. The decedent passed away in 2021. No final year 1040 was filed. Her 2021 income was around $10,000. Is filing a final 1040 always the best practice?

Thank you very much!

For #1, you can report it as nominee income. There is either a check box to select that or you enter the income as stated and then a deduction for "Nominee income to xxx-xx-xxxx". Look up the recommended way in the 1041 instructions.

#2, see #1

#3 Depends if there are refunds or if there is some other reason you must report it as final. If the return is marked "Final", the IRS will ask for additional info before direct depositing a refund to someone else. I usually wait until the following year to mark it final. A lot of seniors on social security fall off the filing rolls as they are under the reporting cap and are not getting anything back, so it is unlikely the IRS will chase it, but leaving it open means someone else could use it in a fraudulent activity.