amend a return for deceased sister

[tdenssvt]

   My sister died earlier in 2021 and I am the executor of her estate. While reviewing her papers I discovered that she did not report royalties from a lease on her 2019 Federal return. I want to use TT to amend this return, but do not know what forms, etc. are necessary.  

   I will also need to file her Federal and State returns both for 2020 (she was too ill to complete them earlier this year) and for 2021. Will I need the same forms or will there be additional ones I must use?

[Anonymous_]

I am sorry for your loss.

You might want to seek professional tax guidance and/or legal counsel for this issue.

Regardless, Form 56 should be filed, but the form is not included in TurboTax.

See https://www.irs.gov/instructions/i56#idm139826519250800

With respect to the final return (for the 2021 tax year), you will have to prepare and file Form 1310 if she is owed a refund unless you were appointed by the court as the personal representative (in which case you would simply attach a copy of the certificate showing your appointment).

See https://www.irs.gov/pub/irs-pdf/f1310.pdf

Note that an estate income tax return (Form 1041) may also need to be filed.

See https://www.irs.gov/instructions/i1041#idm140229151947712

[Critter-3]

Using TT to amend a return that was not filed using the TT program is not an easy task so I highly recommend you seek local professional guidance for the amended return as well as the 2020 return. 

[fanfare]

As executor, I think you are not responsible for  your sister's prior year tax returns that your sister signed.

[Critter-3]

As the  executor you are responsible for filing any and all tax returns needed to be filed including any amended returns. https://www.irs.gov/taxtopics/tc356

[Opus 17]

To file an original 2020 return, you would need to purchase TurboTax for 2020 as a cd or download directly from TurboTax or from an authorized 3rd party seller like Amazon (because TurboTax 2020 online is closed).  
https://www.irs.gov/businesses/small-businesses-self-employed/deceased-taxpayers-probate-filing-esta...

To file the final 2021 return, you could use TurboTax on a CD or download, or use TurboTax online.  If you also have to file a return for yourself, it will usually be more cost effective to use the CD or download version, since each online tax return needs a separate account.  

To file an amended 2019 return, you could use TurboTax for 2019, which at this point you can only buy direct from TurboTax.  
https://turbotax.intuit.com/personal-taxes/past-years-products/

However, you would first need to exactly recreate the persons original return, mark it as “filed” by printing it (but not mailing), then save, exit, and restart the program to start amending.  To create the original return, you would need a copy of their 2019 return and their tax information.  Since this can get complicated, you might benefit from professional help.  

[fanfare]

IRS says:  Topic 356

"The personal representative is responsible for filing any final individual income tax return(s) and the estate tax return of the decedent when due. "

The word amend or amendment does not even appear in the topic.

[Anonymous_]

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@fanfare wrote:

The word amend or amendment does not even appear in the topic.

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That would be irrelevant. The personal representative is a fiduciary and a fiduciary's duties persist until the fiduciary relationship is terminated (typically by filing Form 56).

[Critter-3]

If the personal rep knows of an issue with the return then it is their responsibility to remedy the situation before closing the estate so amending known problems.   When you file a form 56 they will review the prior year returns and you will have to make the correction then so doing it in advance so the estate can be closed is the best option.