How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29965
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

The taxpayer died in May of 2014. The firm that always does

Customer Question

The taxpayer died in May of 2014. The firm that always does her taxes did the filing for 2014. They only included income prior to the death, so the remainder of income (dividends, interest, etc) is IRD. I did the son's tax return for 2014, who is the executor of the estate. I did not realize (I should have, but overlooked it) that all of the 2014 income was not reported on the return until I saw the return today. Form 706 does not need to be filed. The deceased did not owe tax for 2014 and would not have even if all income was reported. Now I am concerned since some of this income was not reported at all, what to do for 2015. Should a 1040X be filed for the deceased, or a 1040X filed for the son?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: This estate is a true mess due to the deceased having uncashed IRS refund checks and that still has not been resolved. One is dated in 2003 with her deceased husband's name on the check, who has since passed away. Some of the stock shares are still in the deceased's name.
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

You have a very valid concern...
What I suggest to verify how the estate tax return was filed.

If the estate tax year was from the date of death in May of 2014 till Dec 31, 2014 - then you do not have any choice - but you would need to amend 2014 tax return and add information reported on K1.

However - if the estate elected to have a calendar ended on Apr 30, 2015 - then - all information from K1 will go to 2015 tax return of the beneficiary.

So that is a little thing we need to verify.

Customer: replied 1 year ago.
The estate tax return was a 1040 ' only included income that the taxpayer actually received. Therefore there were dividends, etc. that were not reported in 2014. A schedule K1 was filed, but did not report any income.
Expert:  Lev replied 1 year ago.

The FINAL tax return of the decedent is filed on 1040 - that is correct,

that return includes all income received BEFORE the date of death.

Expert:  Lev replied 1 year ago.

But for all IRD income - received AFTER the death - these must go to the estate tax return - form 1041 - and K1 are filed to each beneficiary.

That K1 should be used to pass taxable income from the estate to each beneficiary.
So if income was distributed from the estate - but was not reported on K1 - that was a mistake - and should be corrected.

To correct previously filed tax return - we need to file an amended tax return.

Let me know if you need any help with reporting.


I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all tax related issues.