Question 1

Who is responsible for federal and Florida tax filings for an estate?

Accepted Answer

In most Florida probate cases, the personal representative (executor) is responsible for handling all tax filings related to the decedent and the estate. Under Fla. Stat. § 733.602, the personal representative acts as the fiduciary for the estate, which includes filing all required federal income and estate tax returns.

Question 2

What tax returns are required after someone dies?

Accepted Answer

Three types of returns may apply: (1) Final Individual Income Tax Return (Form 1040) for the decedent; (2) Estate Income Tax Return (Form 1041) if the estate earns more than $600 of gross income after death; and (3) Federal Estate Tax Return (Form 706) if the estate exceeds the federal exemption amount (currently over $15 million per individual), including lifetime taxable gifts.

Question 3

When is Form 1040 required and when is it due?

Accepted Answer

Form 1040 is the decedent’s final individual income tax return, covering January 1 through the date of death. The personal representative must file IRS Form 1040 under 26 U.S.C. § 6012(b)(1), pay any outstanding income taxes from estate assets, and file by the standard April 15 deadline of the year following death. Failing to file can result in penalties and potential personal liability (26 U.S.C. §§ 6651, 6672).

Question 4

When must an estate file Form 1041?

Accepted Answer

If the estate generates more than $600 of gross income after the date of death—for example, interest, dividends, or rental income—the personal representative must file IRS Form 1041 (26 U.S.C. § 6012(a)(4)). The estate must obtain its own EIN. Form 1041 reports post-death income, deductions and distributions to beneficiaries, and any income taxes owed by the estate.

Question 5

When is Form 706 required and what are the deadlines?

Accepted Answer

Although Florida has no estate or inheritance tax, the federal estate tax applies to high-value estates. If the total gross estate plus lifetime taxable gifts exceeds the federal exemption amount (currently over $15 million per individual under 26 U.S.C. § 2010(c)), the personal representative must file Form 706. The filing deadline is nine months after the date of death (26 U.S.C. § 6075(a)), with a six-month extension available. Filing may also elect portability of any unused exemption to a surviving spouse (26 U.S.C. § 2010(c)(5)(A)). Only a small fraction of estates meet this threshold.

Question 6

What happens after Form 706 is filed?

Accepted Answer

After Form 706 is submitted, the IRS reviews the return and may issue an audit or inquiry if clarification is needed. If accepted, the IRS issues an Estate Tax Closing Letter confirming liabilities are satisfied. The personal representative should retain the Closing Letter for the estate’s final accounting, provide copies to any required agencies (such as the Florida Department of Revenue if requested), and file a Petition for Discharge under Fla. Prob. R. 5.400 once all tax obligations are met and the estate is ready for closure.

Question 7

Does Florida have an estate or inheritance tax?

Accepted Answer

No. Florida does not impose an estate or inheritance tax. Florida’s prior estate tax (the “pick-up” tax) was effectively abolished after the federal credit was repealed. Homestead property remains exempt from estate taxes under Fla. Const. Art. X, § 4 (though it must still be reported in probate inventories). If any estate tax is due federally, it is treated as an administration expense payable before distribution (see Fla. Stat. § 733.817(1)).

Question 8

Why work with a Florida probate attorney and tax professional?

Accepted Answer

Coordinating estate tax filings requires legal and accounting expertise. An experienced Florida probate attorney can determine which filings apply, coordinate with a CPA to correctly file Forms 1040, 1041, and 706, help prevent personal liability for unpaid taxes, and ensure compliance with Florida probate statutes and IRS requirements before closing the estate. Florida Probate Law Firm, PLLC works closely with accountants and personal representatives to ensure every estate is handled lawfully and efficiently, with full IRS compliance.

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