Unfortunately, as time marches on, some of our closest friends and family have passed away for a multitude of reasons. If you are the executor of the estate of someone who has passed away in the past year, sadly, the IRS will be expecting a final tax return. This includes not only filling out and filing the standard IRS Form 1040 (where applicable) but two additional forms that will be required for you to fulfill your duties.
Forms to File
If there is no surviving spouse and you are the executor of the recently deceased’s will, you should first fill out IRS Form 56 to inform the IRS that you are accepting fiduciary duties for the deceased’s tax matters. Additionally, if the IRS owes the recently departed a return, Form 1310 should be filled out to claim it.
Past these two forms, some additional forms may need to be submitted dependent on the deceased’s lifestyle before their passing. For example, if they were still working during the year of their death, W-2s and 1099s reporting income and expenses may need to be submitted. Additionally, an actual death certificate may need to be submitted at the state or federal level depending on the circumstances.
Give Yourself Some Time
While going through a death of a close relative or friend may be painful, there are some steps you can take to alleviate this process. Many accountants will recommend that you immediately file for an extension to give yourself some additional time to get paperwork and assess the situation. If the deceased had a history of failing to file tax returns or owing money to the IRS, the executor should request copies of recent tax transcripts from the IRS and state taxation agency. This step will ensure everything is cleared up before filing the current year’s return.
This is a tough process no one should go through alone. If you find yourself in these circumstances, give your accountant a ring, and see how they can assist.
Questions? Comments? Feel free to Call DSJ at 516-541-6549 for more information.