The executor of the estate must file returns for the deceased person. This return is due nine (9) months after the date of death. (IRS can extend the time for any payments due up to 10 years) Use Form 4768 to apply for an automatic 6-month extension of time to file.
Life insurance proceeds are included in the estate only IF the proceeds are received by the estate in any way.
The gross estate includes the value of ALL property belonging to the deceased at the time of death.
The value of the property is based upon fair market value at the time of death.
The taxable estate is the gross estate minus the following:
* Administration and funeral expenses
* Claims against the estate
* All outstanding obligations
* Casualty and theft losses
* Marital deductions
* Charitable deductions
It is highly recommended that you hire a Tax professional to complete the Estate Taxes, especially if you do not have access to the decedent's most recent tax returns. All assets are to be listed on the Estate Tax return. If you are not sure of the assets; IRS can help your tax professional with assets that have been reported.
All executors are responsible for the return as filed and are liable for penalties provided for erroneous or false returns.
For more information visit the IRS web site at irs.gov and put in the keyword: estate taxes
Related Tags: tax, taxes, estate taxes, form 706
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