While Texas has no inheritance tax, and the federal estate tax applies only to multimillionaires, the executor of an estate still has duties toward the IRS.
1. The IRS publishes a general guide for executors:
- Publication 559, Survivors, Executors, and Administrators
2. Obtain a tax number for the estate, commonly known as the EIN. Generally, a bank will require a tax number before opening an estate account.
- Form SS-4, Application for Employer Identification Number.
- You can also do this online at: https://sa.www4.irs.gov/applyein/.
3. Notify the IRS of your position as executor.
- Form 56, Notice Concerning Fiduciary Relationship
- The notice remains in effect until you notify the IRS (by filing another Form 56) that your fiduciary relationship with the estate has terminated
4. File the final tax return of the decedent.
- Form 1040, (Final Income Tax Return for Decedent)
- Find instructions in Publication 559
5. File income tax returns for the estate if it has income.
- Form 1041, U.S. Income Tax Return for Estates and Trusts
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