Question 1

How is the IRS involved in the Florida probate process?

Accepted Answer

The IRS ensures all federal tax obligations of the decedent and the estate are addressed before assets are distributed. In Florida, the personal representative (executor) is legally responsible under Fla. Stat. § 733.602 for administering the estate, including managing tax filings and payments required by federal law.

Question 2

What are the first IRS steps a personal representative should take?

Accepted Answer

Confirm whether the decedent’s final Form 1040 is due, determine if the estate will earn post-death income requiring Form 1041, and assess whether the estate’s value may trigger a federal estate tax filing on Form 706. Obtain an EIN for the estate if Form 1041 will be required.

Question 3

Do I need to file the decedent’s Final Individual Income Tax Return (Form 1040)?

Accepted Answer

Yes. Form 1040 covers income from January 1 through the date of death and is due by the normal tax deadline. Under 26 U.S.C. § 6012(b)(1), the personal representative assumes the taxpayer’s filing responsibility. Failure to file or pay can result in penalties and interest (26 U.S.C. §§ 6651, 6672).

Question 4

When is the Estate’s Fiduciary Income Tax Return (Form 1041) required?

Accepted Answer

File Form 1041 if the estate earns $600 or more in annual gross income after death (e.g., interest, dividends, rent) per 26 U.S.C. § 6012(a)(4). The estate must have its own EIN. Form 1041 reports post-death income, deductions, distributions to beneficiaries, and any income tax owed by the estate.

Question 5

When must a Federal Estate Tax Return (Form 706) be filed?

Accepted Answer

Form 706 is required when the estate’s total value plus lifetime taxable gifts exceeds the federal exemption (currently over $12 million per person under 26 U.S.C. § 2010(c)). The deadline is nine months after death, with a possible six-month extension (26 U.S.C. § 6075(a)). Even below the exemption, filing can elect portability of any unused exemption to a surviving spouse (26 U.S.C. § 2010(c)(5)(A)).

Question 6

Can a personal representative obtain IRS tax clearance?

Accepted Answer

Yes. By filing Form 5495 (Request for Discharge from Personal Liability), the personal representative can seek tax clearance. Under 26 U.S.C. § 6905, the IRS generally has nine months to notify the representative of any remaining tax due; otherwise, the representative is discharged from personal liability for those taxes.

Question 7

Are there Florida-specific tax rules during probate?

Accepted Answer

Florida has no state income, estate, or inheritance tax. However, the personal representative must ensure all federal tax obligations are satisfied before final distribution. Under Fla. Stat. § 733.817(1), estate taxes and related expenses are administration expenses payable before beneficiaries receive their inheritance. Before discharge, the representative files a final accounting and a petition for discharge showing taxes were properly handled (Fla. Prob. R. 5.400).

Question 8

Why work with a Florida probate attorney for IRS compliance?

Accepted Answer

Administering an estate requires careful tax compliance in addition to court filings. A Florida probate attorney can coordinate with your CPA to handle Forms 1040, 1041, 706, and Form 5495, help prevent personal liability, and keep the probate on track. Contact Florida Probate Law Firm, PLLC for a free, no-obligation consultation with a Florida probate lawyer.

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