[craftypilbow]

My brother was the executor of my deceased father's estate. He has sent me a 1099-Misc form for the year 2011 that lists the amount of my inheritance as "Other Income." He lists himself as the Payer. Is this correct, or should he have handled this matter differently?

[ebaines]

I think your brother needs to find someone to help him handle the estate financial matters.

Your inheritance is NOT income. And even if it were, your brother is not the payer - the estate is. The only tax form you should possibly receive is perhaps K-1 from the estate if the estate had taxable income that was in turn distributed to you. But this is rare (typical for estates that stay open for a period of years as they deal with the IRS on estate tax issues - so you're talking estates worth at least a few million $$), and if the estate is complicated enough to require issuing tax forms I would hope your brother has hired a CPA to make sure it's done correctly.

Going forward if indeed the 1099-MISC is improper he needs to issue a corrected 1099-MISC so that you aren't held liable by the IRS for income tax on fictitous income.

[craftypilbow]

Thank you for answering. I have a bad relationship with my brother, and was really hoping I wouldn't have to contact him with a complaint. Before I do that, can anyone else confirm the answer provided by ebaines above? I don't doubt it, as it seems self-evident, but I really need to be sure.

[MLSNC]

Yes, the answer is correct. If the 1099 is not corrected, and you do not include it on your return, there is a 99.9% chance that you will receive a notice from the IRS. At that time you can explain what happened and offer any documentation. If that does not work out they are going to issue a tax deficiency and you will can explain your case to the Tax Court. I mention this because you can tell your brother if it is not corrected, he will be given the opportunity to explain it to a judge. That usually gets peoples attention.