Filing for deceased (not stimulus question)

[taxdan]

Stimulus payment aside, is it normally a good idea to file a final return for a deceased person with no tax liability with the sole purpose of letting the government know they've lost another taxpayer?

An attorney told my client this who lost her mother last year.

I'm filing a return this year because of the stimulus thingy, but was just wondering for future years.

Thanks!

Dan

[jklcpa]

I'd say it depends on what's on the return. If the return consists only of items reported to IRS by outside payers (int, divs, soc sec) and the return shows neg taxable income, or no tax/no refund, then there's no reason to file. If the taxpayer had something going that the IRS can't verify such as sch c or rental income but because of expenses, deprec, std ded & exemptions ends up not taxable, then I'd say to file a final return.

[taxdan]

I'd say it depends on what's on the return. If the return consists only of items reported to IRS by outside payers (int, divs, soc sec) and the return shows neg taxable income, or no tax/no refund, then there's no reason to file. If the taxpayer had something going that the IRS can't verify such as sch c or rental income but because of expenses, deprec, std ded & exemptions ends up not taxable, then I'd say to file a final return.

That's kinda been my philosophy also. Thanks for the input!

[GERALD]

I agree with jklcpa. I only file returns when there is a need to. As far as notifying the government, the funeral director notifies SSA before the body is cold!!!

[Bart]

I'd say it depends on what's on the return. If the return consists only of items reported to IRS by outside payers (int, divs, soc sec) and the return shows neg taxable income, or no tax/no refund, then there's no reason to file. If the taxpayer had something going that the IRS can't verify such as sch c or rental income but because of expenses, deprec, std ded & exemptions ends up not taxable, then I'd say to file a final return.

If you have income (int, div, soc sec), then those things are being reported to th IRS. Why not file a return to show the IRS there is no tax due instead of getting a notice years later when no one remembers what happened. Also, if you have a decedent final return and an estate return, if you file both you can reconcile the split of int and div between the two with what was reported on 1099's for the year.