MN Probate | Final Income Tax Return

Final Income Tax ReturnQuestions about filing the final income tax return for your loved one?


Read on.

My office receives many questions that are very similar.  Here is a common question:   Do I need to file an final income tax return for my deceased relative?  The simple answer:  probably.

Filing Requirements of the Final Income Tax Return

The personal representative of a probate estate in Minnesota is required to file any necessary income tax returns for the deceased.  Please see I.R.C. 6012(b)(1) for more information.  The final return is due on April 15 of the year following the person’s death.  The tax year ends on the date of death.  Therefore, if a person dies in 2015, the income tax requirements end in 2015.  No 2016 return would likely be due.

Furthermore, the personal representative of a deceased’s estate is responsible for filing any other unfilled income tax returns that the deceased person did not file.  The personal representative can ask for an extension of time to file the final income tax return if that is necessary.

How do I notify the IRS that I am now representing the deceased?

The Internal Revenue Services (IRS) uses Form 56 “Notice Concerning Fiduciary Relationship”.  A person needs to fill out that form and provide it to the IRS.  Although this form does not have to be filed with the IRS, it is a good idea because otherwise the IRS will not know who to send information and a possible refund to.

Minnesota Income Tax Return

A Minnesota Income Tax Return should also be filed by a personal representative with the Minnesota Department of Revenue.  Extensions, and the like can also be requested.  Please remember that the personal representative simply acts as if they were the deceased.

EIN Numbers

All estates are required to apply for an obtain an emplyer identification number (EIN) from the IRS.  The probate attorney will normally handle this for you.  The EIN will be used to identify the estate and any tax returns related thereto.  The EIN is also used to start an estate bank account.  This account is used to gather all estate funds and issue disbursements to creditors, heirs, and beneficiaries of the estate.  Finally, when the estate is winding-up, the bank account transactions are accounted for in a final accounting.

Free Initial Consultations

Questions about first time personal representative duties?  Contact the Flanders Law Firm today.  The firm offers free consultations to all potential clients and Dakota County probates.  Call (612) 424-0398.

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