Death and Tax Forms

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Question:

I read an article several years ago regarding an IRS requirement that if there is joint account wros and the primary owner(1099 information reported under this person's SSN) dies, the 1099 for that year should include the interest for the primary owner only through the date of death. A new account should be opened for the surviving owner in order to correctly report the interest going forward. Is this IRS requirement still in effect? If so, would it be required for a husband and wife filing a joint return?

Answer:

As far as I can determine the IRS requirement you mentioned is still in effect. I do know a similar requirement is in place regarding a joint marital trust created by a husband and wife as grantors. Any income generated by an account is to be reported on account owner's tax return. If the husband and wife file a joint return the social security number of either spouse can be used for T.I.N. purposes. If a spouse dies, the ownership of the account is held by the survivor as owner or grantor trustee. The survivor's social security number can be used or an new T.I.N. could be obtained. The style of the account should be changed if necessary to correctly reflect the ownership of the account. The same procedure will apply to all account held jointly by a husband and wife.

First published on BankersOnline.com 7/9/01