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#1463869 - 11/04/10 05:19 PM 1099INT reporting on deceased
bluesky Offline
Member
Joined: Jul 2005
Posts: 85
Does anyone out there know if we can continue reporting interest earned on a deceased person with their SSN year after year? We have customers who died several years ago, and the joint owner hasn't requested any changes be made to the Tax Reported Owner. Can we simply put one of the Joint Owners as the Tax Reported Owner to avoid IRS issues/problems?

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Operations Compliance
#1464094 - 11/04/10 07:33 PM Re: 1099INT reporting on deceased bluesky
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,324
Galveston, TX
How do you know they are deceased?
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#1466242 - 11/09/10 10:19 PM Re: 1099INT reporting on deceased rlcarey
cjdod Offline
100 Club
Joined: Feb 2003
Posts: 145
what if we receive a DNE from the SSA? Is that considered valid proof or do we need to see an original Death Certificate?

Granted I have received check reclamations for folks that were actually still alive so I am not saying that I always trust DNE from the SSA but I was wondering about title changes on joint accounts as well.

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#1466250 - 11/09/10 10:24 PM Re: 1099INT reporting on deceased bluesky
Compliance4521 Offline
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Compliance4521
Joined: Jan 2007
Posts: 533
Washington
The account should be closed and reopened with correct account ownership.

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#1466340 - 11/10/10 04:03 AM Re: 1099INT reporting on deceased Compliance4521
BBoyd Offline
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BBoyd
Joined: Mar 2002
Posts: 2,494
MI
Can you force the surviving customer to do that? What if they have forgotten about the account? Seems the interest would continue to be reported under the deceased owner's SSN until the bank is notified, and even then - what does the bank do?
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#1467110 - 11/12/10 03:01 PM Re: 1099INT reporting on deceased BBoyd
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
IRS guidance on how to how to handle reporting on the death of an owner was published in 1987. When you are aware that the person has died you are on notice that the number is no longer valid and your are required to use the TIN of the new owner.

My advice is: If you know the SSN you are using belongs to a decedent and you cannot get the new owner's cooperation, remove the decedent's number from the account. Now, you have an account with no TIN and you must impose backup withholding. You will hear from the new owner shortly.
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#1992896 - 02/02/15 06:47 PM Re: 1099INT reporting on deceased bluesky
BBoyd Offline
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BBoyd
Joined: Mar 2002
Posts: 2,494
MI
Ken - I know it's now been 5 years since this question was asked, but can you point me to the IRS guidance on reporting interest on the death of an owner?

Thank you!
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Opinions are mine and never to be taken as legal advice!

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#1992903 - 02/02/15 07:14 PM Re: 1099INT reporting on deceased BBoyd
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#1992914 - 02/02/15 07:35 PM Re: 1099INT reporting on deceased bluesky
BBoyd Offline
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BBoyd
Joined: Mar 2002
Posts: 2,494
MI
You are the BEST! Thank you!!!
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Opinions are mine and never to be taken as legal advice!

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