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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3121
Experience:  IRS licensed Enrolled Agent and tax instructor
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The son of a Person who had a reverse mortgage just got a 1099-C

Customer Question

The son of a Person who had a reverse mortgage just got a 1099-C from a bank who had held the mortgage. When the father died (08/30/2014) he had an amount of $44,502.19 the reverse mortgage could not recover. They sent the 1099C to the father's estate. The estate was closed at 08/30/2014. The identifiable event is stated as 09/02/2015. Is anyone liable for anything?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you. The liable party would be the estate but if the estate was closed 2 years ago, the liable party doesn't exist any more. If the amount was huge, lets say couple of millions I would suggest to look into amending the final estate return but with 44K I would just let it go.
Customer: replied 1 year ago.
The Sr. Mr. P. died 08/30/14. Estate return was filed 06/16/2015. No two years to 09/02/2015. Would this change your mind?
Expert:  emc011075 replied 1 year ago.
It is still after the final estate return was filed and I am assuming estate was closed on Jun 16. The 1099C was issued to an nonexisting entity at that point. I wouldn't worry about it.
Expert:  emc011075 replied 1 year ago.
Any questions? Is there anything else I can help you with today? You may come across different opinions on the issue. It is one of those gray areas where IRS is not providing a clear answer and leave to interpretation of the preprarer. One preparer may say, the estate was legally closed and is not responsible, other preparer would say it is ethical or moral responsibility of the beneficiaries to file another estate return. Anyway, if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.