Have you ever heard of IRS form 1041 (IRS Form 1041, U.S. Income Tax Return for Estates and Trusts)? I doubt it. This form is the IRS's way of dealing with the dead. Yes, even after your dead the IRS still has a few issues to settle with the dear and departed. If you are a taxpayer or employer, you need to be aware that this form exists. If the estate generates over $600 in income, then you must file this form. Less than $600 if the estate's beneficiaries are non-residents aliens. The executor of the estate must obtain a tax ID number for starters.
The IRS wants to square your accounts..
So, you pass away and leave your decedents with a foot-high stack of 1099 INTs showing a hefty return, maybe some rental income, or a chain of liquor stores for example, so the IRS 1041 will help to solve this dilemma. The IRS wants to square your accounts via the executor. My catechisms classes at our neighborhood Catholic Church were not a total waste. I got hooked on Latin. I'll share this quote with you - "ignorantia legis neminem excusat," ignorance of the law excuses no one. Just remember that this form exists and is something that at some point you should discuss with your executor and tax advisor. This is a cursory look designed to prompt your thoughts into this subject. You should delve more deeply into the subject if there is a pressing need. Prepare, prepare, prepare. D Jaquez RTRP.