Filing Extension for Decedent

[Steverino78]

Hello.  I'm Administrator for my brother's estate.  My brother died in January 2024.  I am working on his 2023 taxes.  He was alive all 365 days of 2023.  Probate of his estate has just started.  He had taken large Distributions from his IRA in 2023 resulting in a $48K Federal Tax due plus $12K State - (WI).  It may take another month before his funds are unlocked and available to pay these taxes.  

I looked into requesting online delayed payment, but immediately uncovered the demand for a CAS number, which apparently takes four weeks.  I feel backed into the corner of either liquidating personal funds to pay his substantial debt or accepting the fees and penalties induced by filing  Form 4868 with $0 payment.  

"If" these are my primary options, I will opt for Form 4868.  Turbotax populates the figures from the return I have finished.  All I've manually entered is the $0 payment.  Best I can determine is that I now mail ONLY this form, no other documents.  This does however leave me with some worry if I make any changes to his return between now and the time I mail the completed tax return with full payment.  (Because the numbers won't match between the 4868 and the finalized 1040.)

Internal to all of this:  My brother died in the window of time between a full yearly tax season (2023) and the tax preparation time for that previous tax season (Jan1-April15).  In the context of completing this 2023 tax return, is he alive or deceased?  (To what degree does it matter to the IRS... primarily the signature on the 1040?)

Lastly:  Apparently in Wisconsin, filing for Federal extension automatically triggers a Wisconsin extension.  My next search is to learn if I also need to send Wisconsin DOR this same form, or, if somehow, the Fed automatically notifies the State.  

[AmyC]

1. The form 4868 is an extension to file because you don't have all of your information together. You file the form with a best guess of what your taxes will look like. The IRS expects changes otherwise, you would have just filed the return.

2. Your brother was alive for 2023 so all income goes on his personal return. However, for filing purposes, he is deceased. You will need to file based on your authority. The IRS has a quick  How Do I File a Deceased Person interactive assistant. It is very detailed and may give you additional information. 

3. For WI, just attach the Fed 4868 to the WI return. There is no interaction, WI is just casually waiting for 6 months.

If you have an extension for filing your federal return, this automatically gives you a six-month extension in Wisconsin, provided you attach a copy of your federal extension application to your Wisconsin income tax return. DOR Tax Filing Extensions For Paper and Electronically .

[Steverino78]

Just one clarification please.  

Federal - Postmarked 4/15 or earlier, send ONLY the 4868.  I will not be sending ANY payment (because of the probate delays).  The IRS will simply apply the penalty and interest up to the time the full tax return and payment are received on or before 10/15/24.  

Wisconsin - Send them NOTHING by 4/15/24.  When the money from my brother's estate is finally available in a few months, send the full Wisconsin return (as typical) along with full payment and a copy of the 4868.

(They really are just casually waiting without penalty when nothing was sent their way by 4/15!?)  

[DianeW777]

It depends.  Wisconsin (WI) accepts the federal extension if you are approved by the IRS. 

Per the Wisconsin (WI) FAQs:

1. Am I subject to interest or penalties if I don't file my Wisconsin income tax return by the due date?

If your 2023 individual income tax return is not filed by April 15, 2024, you may be subject to the following charges:

• Late-filing fee: $50
• Delinquent interest: 1.5% per month (18% per year).
  Note: During an extension period, interest is charged at 1% per month (12% per year) on any unpaid tax due
• Negligence penalty for failure to timely file: 5% per month of the tax required to be shown on the return, up to a maximum of 25%

1. Will I be assessed a late filing fee if I qualify for an extension of time to file?

Wisconsin allows a 180-day extension period (same as for federal tax). You will not be assessed a late filing fee if you file within the extension period. You may be assessed interest if tax is due.

@Steverino78 

[Steverino78]

Hi,  I'm administrator of my brother's estate.  I filed an extension in early April, now needing to file his return and pay his taxes by October 15, 2024.  However, I cannot remember with certainty as to the information I already provided to the IRS at the time I submitted the extension in early April.   

My question is this:  Should I now print the necessary documents, just as I would have done in April, mailing these documents with W2 and 1099R's attached?  And if so, I'm assuming there is a specific IRS address for these extended returns?  I filed the extension with the Kansas City IRS processing center so this may simply be the route for the completed return and check?   

I'm located in SE Wisconsin, if this matters.  In this regard, I have the same questions for the extension of his Wisconsin return.   Thanks in advance for any guidance as this is my first time with an extension.  -- Steve

[DoninGA · Accepted solution]

@Steverino78 A mailed federal or state tax return is sent to the normal address for each tax return.  Just because an extension request was filed does not mean the tax returns have to mailed to a different address.

Go to this IRS website for where to mail a federal tax return, with or without a payment, by state - https://www.irs.gov/filing/where-to-file-paper-tax-returns-with-or-without-a-payment

Go to this Wisconsin Department of Revenue website for the state tax return mailing address, with or without a payment - https://www.revenue.wi.gov/Pages/FAQS/pcs-mail.aspx#mail1