Filing taxes for Reopening an Estate

[yukon_jack]

I closed my sisters estate in 2018 and filed the last estate taxes then.  She was a victim of fraud and I recently received a restitution check from the U.S. Treasury made out to her.  My lawyer informs that I have to reopen the estate to cash the check.  Do I file taxes for the estate for 2019 and 2020 or just for 2020?  The amount of the check is approximately 60% of the amount she was defrauded.

Thank you.

[Anonymous_ · Accepted solution]

Reopening a closed probate matter (estate) does not necessarily entail filing a Form 1041.

Ask your attorney (or tax professional) if you need to do so, which generally will only be required if the estate receives gross income for the tax year of $600 or more.