Why do you file income taxes for deceased person?

Answer 1

There are many taxes due during the life and at the the death of a person. While most are handled annually (and most people die with part of a year un-accounted for) , some parts of most tax calculations and some others entirely, may be delayed over years (or concluded) upon death. Any past due amounts would also need to be paid by the persons estate to essentially close their account with the government. Upon their death, final returns to do so, as well as returns that may be a once in a lifetime (Estate Tax) returns may need to be filed. Frequently no, or very limited amount of tax is due, and it becomes more of a recording process. Also rember that very frequently, a REFUND is the result of any tax filing.

When you are the personal representative of the taxpayer estate, I.e., you are the administrator, executor or the person in charge of the taxpayer property. You will use one of the 1040 tax forms for the final return of the taxpayer.

After entering the deceased name, and date of death at the top of the tax form, you sign your name in the signature block and add the words "filing as personal representative". You also need to complete IRS Form 56, Notice Concerning Fiduciary Relationship and send it with the return.

Also if a refund is due then a form 1310 is needed to assure that the refund is issued in the Per. Rep's name.

You can obtain a copy of this form by going to http://www.irs.gov/formspubs/ clicking on Forms & Instructions. This will take you to a page where you can pick and choose whatever forms and publications you need.

You may want to read IRS Pub 559 for Survivors, Executors and Administrators.

Enclosed web site has some very useful information that you can use to start with for this tax situation.

http://taxtopics.net/topic4.htm#decease

http://taxtopics.net/topic4.htm#est

And of course you do not want to forget about the state as they may have some different filing requirements.

Publication 559 is designed to help those in charge of the property (estate) of an

Individual who has died (decedent). It shows them how to complete and file federal income tax returns and points out their responsibility to pay any taxes due.

A comprehensive example, using tax forms, is included near the end of this publication.

Go to www.irs.gov and use the search box for Publication 559, Survivors, Executors, and Administrators

http://www.irs.gov/publications/p559/index.html

http://www.irs.gov/formspubs/page/0,,id=12422,00.html