Level 3

INTEREST INCOME RECEIVED AFTER FINAL FORM 1041

Forum|Forum|2 months ago
April 5, 2026
1 reply
9 views

Hi all, my client was the personal representative, and sole beneficiary, for her brother's estate. The Final 1041 was filed for 2023 by the estate lawyer. Form 1099INT for 2025 was received from the IRS for interest on the refund from that filing year. The estate bank account is still open and the interest was directly deposited into that account. No distribution was made to my client in 2025. Question, do I now file another Final 1041/541 for 2025? If so, it will result in taxes owed of $19/$8. Or can I just show it on the client's 1040 as nominee interest from the estate? If so, is a 1099INT required from the estate to the client? Thanks in advance.

ProSeries Tax

BobKamman

Level 15

What happened? That's the tax on about $700 of interest, which would have been paid on about $10,000 of refund if it was paid a year after the 4/15/24 due date. They marked the 2023 return "final" without knowing when the estate was going to be closed? Did they do that so the beneficiary could claim losses and deductions on her 2023 return? And does any of that make a difference?

Like many questions here, this is in the category of "what can I get away with" rather than "what does the law require." You seem to already know the answers.

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