- Business Advocacy
When a taxpayer dies, there are certain returns that still need to be filed, a responsibility that falls onto the personal representative.
Duties of personal representative — Duties include collecting all of the decedent’s property, paying any creditors, and distributing assets to beneficiaries. In addition, the representative is responsible for filing various tax returns and seeing that the taxes owed are properly paid.
No court-appointed representative — When there is no probate and no appointed representative, the IRS will allow a “person charged with property of the descendant” to file the decedent’s income tax returns and claim refunds. IRS written guidance does not specify who this person should be. If there is a surviving spouse, he or she usually files a joint final Form 1040 and any other required returns. If there is no surviving spouse, the person who files commonly:
The IRS uses the term “personal representative” to refer to anyone filing for a decedent, whether or not court appointed.
Decedent’s tax returns —The personal representative is responsible for the following returns when required:
A personal representative may be personally liable for unpaid tax if he or she distributed assets, the estate is solvent as a result, and the personal representative had notice of the tax claim.
For more information, contact your tax preparer or irs.gov or ftb.ca.gov. This information is from Tax Material, Inc.