Tax Responsibilities for Personal Representatives

You are responsible for filing the decedent’s final individual income tax returns for the year of death, even if there is a surviving spouse. If a final federal income tax return is required to be filed for a decedent for the year of death, a final Form M1, Individual Income Tax Return is also required. Use the same filing status for Form M1 that was used to file the final federal return.

For more information, see Filing on Behalf of a Deceased Taxpayer.

Forms You May Need:

• Form 1040, Federal Individual Income Tax Return
• Form M1, Minnesota Individual Income Tax Return
• Form M23, Claim for a Refund Due a Deceased Taxpayer

Due Date

April 15 of the year following death.

You should confirm that all required returns are filed for the decedent. Federal and state law holds you responsible for any tax due on a decedent’s final or previous years’ returns and for the estate of the decedent.

The decedent’s estate starts on the date of death. After that, income is usually no longer attributable to the decedent. Probate income is reported as income of the estate, and nonprobate income is reported by the individual or entity receiving the income.

You must file Form M2, Income Tax Return for Estates and Trusts for each year the estate is open. A return is required for each tax year in which the estate has a gross income of $600 or more or has a nonresident alien as a beneficiary.

Forms You May Need:

• Form 1041, U.S. Income Tax Return for Estates and Trusts
• Form M2, Minnesota Income Tax Return for Estates and Trusts

Tax Year

The tax year begins the day after death. It ends on the last day of any month chosen by you, but must not exceed one year after the date of death.

Due Date

The 15th day of the fourth month following the end of the tax year.

Estate tax is imposed on the value of the decedent’s estate. Federal and state estate tax returns are required when the total gross value of the estate exceeds the amount shown in the following table:

*Subject to change. For more information view the Estate Tax Filing Requirements.

Forms You May Need:

• Form 706, Federal Estate Tax Return
• Form M706, Minnesota Estate Tax Return (for deaths after December 31, 2001)

Due Date

Nine months from the date of death.

Business Taxes

If the decedent had a business and it continues to operate after the date of death, any business taxes must be kept current during the period of administration. The period of administration is the entire time the estate remains open until assets are disbursed to beneficiaries.

Property Taxes

If the decedent’s property taxes are due during the period of administration, you are responsible for paying them. For questions regarding property tax, please contact your county court system.

Property Tax Refund

Only the decedent’s surviving spouse or dependent may claim the decedent’s property tax refund.

Your Income Tax

As a personal representative, you must treat any compensation you receive for services performed as your income.

If you want to speed the closing of the estate, you can file a request for early audit of the income tax return by completing Form M22, Request for Early Audit of Minnesota Income Tax Returns.

An early audit request means we cannot assess additional tax after 18 months have passed after the filing date. The regular auditing time period is 3.5 years after the filing date.

An early audit request can be made only for Form M1, Individual Income Tax or Form M2, Income Tax Return for Estate or Trust. It does not apply to the estate tax return, Form M706.

Under state and federal law, penalty and interest relating to the decedent’s income and estate tax affairs could be imposed for any of the following reasons:

• Late filing or payment
• Failure to file or pay
• Fraud
• Frivolous returns
• Negligence
• Substantial understatement of income

Federal and state law holds you liable for income and estate taxes where funds have been distributed without saving enough to pay the various taxes.

Search for Estate Forms or call 651-556-3075 to have forms mailed to you

Search for Federal Forms or call 1-800-829-3676 to have forms mailed to you

See the federal Publication 559, Tax information for Survivors, Executors and Administrators. Laws are subject to change.

You may also contact us:

• Minnesota Department of Revenue: 651-556-3075 or businessincome.tax@state.mn.us
• Internal Revenue Service: 1-800-829-1040