Before filing your Final Estate Tax Return, you need to determine what type of tax year your decedent used. The tax year you use will determine whether the deceased used the calendar year, or a fiscal one. Fiscal years end on the last day of any month other than December. If the decedent chose a calendar year, you’ll need to use that year’s tax laws. Regardless of which type of tax year your decedent used, completing and filing the Final Estate Tax Return is a complicated process.
Fortunately, there are several options for completing your estate tax return. You can file a joint return with your surviving spouse, as long as you did not remarry before the calendar year in which you died. This option is ideal for those who do not want to deal with the tax law alone. However, you should always consult the IRS’s instructions for the correct way to fill out the Final Estate Tax Return. You can also file a joint return without the surviving spouse.
If you’re the executor, you’ll likely need to file the Final Estate Tax Return with the Internal Revenue Service. Even if the beneficiary of your estate is a non-resident, you still need to file an estate tax return. A final estate tax return is prepared in much the same way as an individual income tax return. You must report all of the decedent’s income and expenses, and claim any available credits and deductions.
The IRS will consider whether or not your decedent’s executor’s actions were unreasonable. Joan Boeving’s reliance on Charles Cable as executor was unreasonable, and her failure to exercise ordinary care and prudence in the handling of the estate. In this context, the IRS cites the case of Kroll, 547 F.2d 393 (7th Cir. 1977), which provides an example of a situation where an executor may not follow the rules.
While it is important to file a final estate tax return as early as possible, there are a number of situations in which the timing of the filing may be inexplicable. If you’re late, you’ll likely be subject to a penalty, which can be up to eight times the amount of your decedent’s estate. However, you can still avoid the penalties and interest by carefully evaluating all circumstances. This article examines the circumstances in a case like Joan Cable and argues that the timeframe for filing estate tax returns has changed.
If your decedent passed away before the end of April 15, 2015, you may elect to prepare a Final Estate Tax Return. The deadline for filing a Form 1041 is April 15 for calendar-year estates. If your decedent had a December 31 tax year, the deadline for filing your estate tax return is the 15th day of the fourth month after the end of the tax year. There is an automatic five-month extension if you need it.
