Rmd For Deceased- Whose Tax Id Number Should It Be Reported Under?

[Guest Taxwoman]

Spouse beneficiary is electing to treat the deceased's IRA as her own. He died after his required beginning date, but before he satisfied his 2001 RMD (he died earlier this year). I understand that the amount that represents his RMD must be reported under the spouse beneficiary's social security number. However I am being challenged on this because the rules state that the spouse beneficiary cannot rollover the amount that represents the deceased's RMD. . Can you provide me with a citation (regulation etc.) which states the amount representing the RMD of the deceased, if distributed after the deceased dies, must be reported in the SS# of the spouse beneficiary?

Thanks

[BPickerCPA]

I can't cite you chapter and verse, but whose ID # does the entity challenging you think it should go under?

It can't be the decedent's SS#, because the decedent never received it, and his tax year ceases upon his death. It can't be the decedent's estate's ID#, since that entity is not the recipient of the distribution. The basic tax law is that the recipient of the income is the one who must pay tax on it, and that's that spouse. It therefore follows that it's the spouse's ID# under which it should be reported.

If it's the IRA custodian who is giving you the problem, speak to a supervisor.

[Guest Taxwoman]

Thanks Barry,

Actually- the IRA custodian (who we use as our clearinghouse and to process our IRA transactions) agrees with you. It is the client's attorney that is disagreeing

[BPickerCPA]

The client's attorney should be able to research this and come to the right answer. If he/she cannot do this, I'd question what else is being done incorrectly.

Just my opinion.

[Appleby]

The instructions for Filing IRS Form 1099-R does state that distributions to beneficiaries must be reported in the tax ID number of the beneficiary- not the deceased.