Decedent's Personal Representative

• The IRS imposes the obligation to file the decedent's final tax return on the personal representative who has the authority to do so. A decedent can name anyone as the personal representative in a will, also known as the executor, including brothers and sisters. If the decedent doesn't provide for an executor, the state in which the decedent resides at death can appoint an administrator through the court system. Ultimately, it is the responsibility of the executor or administrator to file the decedent's last tax return. However, the decedent's filing requirements are the same as when he was alive.
  
  

Decedent's Filing Requirements

• If you are serving as the executor or administrator of an estate, you should evaluate whether the decedent earned sufficient income in the last year to require the filing of a tax return. A taxpayer has an obligation to file a tax return for any year his income that is subject to tax exceeds the sum of the standard deduction for his filing status, plus one personal exemption. For example, if the decedent is a single taxpayer and passes away in 2011, you must file a tax return if his earnings exceed $9,500. However, if the decedent is married at the time of death and files joint returns with his wife, the executor may no longer be responsible for filing the return.
  
  

Surviving Spouse

• If the decedent is married at the time of death but doesn't appoint his wife as executor of his estate, it becomes the responsibility of the surviving wife to file a joint return, not the personal representative. In this case, the surviving wife must include all income her husband earned up to the date of death, plus her own taxable income, to determine whether a tax return is necessary. For example, married taxpayers only need to file a tax return if their joint income exceeds $17,000. Therefore, if a return is necessary, the wife can file a joint return in the same manner as previous years.
  
  

Filing Requirements

• The person responsible for filing the decedent's last tax return is subject to the same due dates as if the decedent was alive. Since all taxpayers who use the calendar year as their tax year must file tax returns by April 15, the representative must adhere to this deadline, regardless of the date of death. Additionally, the representative must use Form 1040 to report the decedent's income and deductions. If the decedent still owes the IRS for prior year tax returns, the representative must file these, as well.