1099-DIV received for deceased spouse
My father-in-law passed away in 2012. We didn't get all his investment accounts moved into my mother-in-law's name until mid-2013. Because the estate was relatively small, with all going to his wife, we didn't bother with probate, so never filed for a TIN for the estate. For 2013 my MIL is filing her taxes as single, but we have two 1099's that are problematic - one in his name and one for a joint account for dividends paid prior to getting the account retitled in her name. These are not for huge amounts - one is for $38 and the other $123. I'd like to just include both on my MIL's income tax return, but does she need to file 1099's showing the dividends received by her spouse as nominee for her? Or given the rather small amounts and the fact that this is husband and wife can she skip that? If we do go the 1099 route, I know the deadline for issuing 1099's was February - is there a risk of an IRS penalty for late filing of the 1099, even though it would be my MIL effectively issuing the form to herself? That would seem a bit silly, but we're talking the IRS here. Advice on how to proceed would be appreciated, thx.