Deceased parent with no executor

[HelloTiffanyJ]

Hello

Me and my siblings are debating if we need to file a 1040 tax return for our mother who passed in January of this year. My sister wants to file an extension for now. I believe we do not need to file anything. My mother did not own any assets, has no money in her bank account, and passed without a will or appointed representative.

She received annuity and social security last year. And a tax estimate shows she will owe about $1,200. 

Can anyone please shed some light on this? Does anything need to be done ? Thank you

[John Betcher]

Since you estimate that taxes will be owing for your parent's final year tax return, you should file a return. If taxes are owing, getting an extension will not relieve your parent's estate of liability for late payment penalties. It would be possible to file an extension form along with an Estimated Tax Payment which, if sufficient in amount, would avoid such penalties. If your parent's estate has no assets, as you indicate, there will be no way for the IRS to collect the amount of taxes owing. You would only be liable for payment to the extent of any assets you inherited.

Here is further info:

To file taxes for a deceased person, you generally need to file and prepare the final individual income tax return the same way you would if the person were alive1. Report all income up to the date of death and claim all eligible credits and deductions. If the deceased had not filed individual income tax returns for the years prior to the year of their death, you may have to file1. If there is not a surviving spouse, someone needs to be chosen to file the tax return, such as the estate's executor or administrator2. To prepare the return, you will need to access financial records and may need to provide a certified death certificate2. If there's no appointed representative and no surviving spouse, the person in charge of the deceased person's property must file and sign the return as "personal representative"3. If filing a paper return, write the word "deceased" along with the decedent's name and date of death at the top of the 1040 or 1040-SR4.

[tagteam · Accepted solution]

I am very sorry for your loss.

If the tax estimate indicates she will owe $1,200, then it appears as if she is over the filing threshold and a return needs to be filed (you might also want to check state income tax liability).

See https://www.irs.gov/publications/p559#en_US_2022_publink100099499

[CatinaT1]

Yes, a final return for 2022 will need to be filed for her. 

Was there a court-appointed representative for her estate? The estate is who would be responsible for any balance due. I would seek the advice of an estate attorney.

[HelloTiffanyJ]

Hi, there was no court-appointed representative for her estate.   Would it still need to be filed if she had no estate or assets to pay the taxes ?

[tagteam · Accepted solution]

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@HelloTiffanyJ wrote:

Hi, there was no court-appointed representative for her estate.   Would it still need to be filed if she had no estate or assets to pay the taxes ?

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You need to be cautious in this scenario with respect to transferee liability.

If she truly had no assets, meaning heirs (or others legally entitled to succeed to any property she held at her passing) received nothing, then there should not be any issues with respect to any income tax liability she may have had prior to her passing.