FORM 1041 AND IRA

[TAXMAN]

TP deceased. Administrator cashes in IRA(600K) puts into estate checking account. Administrator pays Heirs 300K. No other distributions. Heirs pay tax on their 300K. Who pays tax on remainder? Not a final 1041 being filed as off this date. I think the estate on form 1041 owes the tax. What say you?

[mcbreck]

If there is distributable net income that is not distributed, the 1041 would owe the tax. You can't just delay paying the tax but you can delay distributing the money.

[Sara EA]

mc is correct, the estate will pay tax on the money it kept.  It may have some deductions though, like probate or attorney fees.