Filing Final Income Tax Return for Deceased Person: Mastering Allocations, Understanding IRD, and More

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A


Conducted on Wednesday, November 20, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will give tax advisers and professionals detailed guidance on the specific issues arising when filing the final income tax return for a deceased taxpayer. The panel will discuss the role and requirements of a personal representative filing a return under Form 1310 authority, review the mechanics of obtaining information from the IRS, offer in-depth analysis of income in respect of a decedent (IRD) calculations, as well as discuss the proper reporting of stock options, basis differential on covered securities, and other specific classes of income. The panel will also review planning options and available tax elections.

Description

While the general requirements of filing the return of a decedent are similar to those of living taxpayers, there are unique issues when filing the final Form 1040 Income Tax Return for a deceased taxpayer. From fundamental questions--such as who has the authorization to file a return--to more complex matters, such as allocating income between the individual and fiduciary tax return or coordinating tax elections, tax professionals must know what's required to file a final 1040 return for a taxpayer.

One of the most challenging issues arising out of filing a final tax return is determining and reporting IRD. Any income to which the deceased taxpayer was entitled is considered IRD, and certain classes of income items are deemed IRD.

In addition to reporting issues, there are some tax elections which may be available to survivors and the estate of the decedent, depending on the taxpayer's circumstances. Income tax advisers must coordinate with the estate's executor or the appointed personal representative to determine the tax effects of particular elections, such as the IRC Section 645 election to treat a revocable trust as part of the decedent's estate for income tax purposes. Tax advisers need to be well-versed in post-mortem planning options as part of the process of filing the final income tax return.

Listen as our expert panel discusses IRD reporting, describing basis adjustments that occasionally arise in reporting covered securities, available tax planning options, and other issues relevant to filing a final individual tax return for a deceased taxpayer.

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Outline

  1. Filing requirements
  2. Income calculations
  3. Income in respect of a decedent
  4. Common issues
    1. Stock options
    2. Basis adjustment to covered securities
    3. Section 199A
    4. Marital planning; and
    5. Termination of grantor trust status
  5. Available tax elections and coordination with the fiduciary return to decide on available elections

Benefits

The panel will discuss these and other critical questions:

  • What are the filing requirements and determinations for a final tax return?
  • What income items must be reported as IRD?
  • How does the tax preparer report capital gains income in the case of compensatory stock options?
  • What elections may--or must--be made in preparing the final tax return?
  • What are the factors to consider in coordinating with the executor or personal representative to determine the tax impact of specific elections such as the Section 645 election?

Faculty

Kass, David
David N. Kass, CPA, JD
Owner
Kass & Kass

As an attorney, Mr. Kass represents clients in all kinds of tax controversies from Offers in Compromise, tax audits and...  |  Read More

Young, Audrey
Audrey G. Young

Of Counsel
McLane Middleton

Ms. Young focuses her practice in the area of trusts and estates law and taxation. She counsels individuals, families...  |  Read More

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