8. Dealing with a death
Death is the destination we all share and when that day comes, your personal representative (such as your spouse) will have to file a final tax return in your name, same as if you were still alive.
Your spouse can file a joint return for that year if he or she so chooses. Also, based on the size and composition of your assets, an estate tax return may also need to be filed. After the assets of your estate are distributed, it is the responsibility of your individual heirs to file their own tax returns that include any inherited assets going forward.
Important: As the United States deals with the new coronavirus, all taxpayers and businesses will have until July 15 to pay their taxes this year, but the filing deadline is still April 15, for now. “The extended tax payment deadline and penalty relief is likely to be welcomed by taxpayers,” said Gail Perry, CPA, a tax professional and the editor-in-chief of CPA Practice Advisor.
“This is especially true for those who are dealing with family issues relating to the pandemic. The extension is also beneficial to the IRS as that agency might be facing reduced staffing accompanied by taxpayers unable or unwilling to venture into a government office for assistance. As for tax preparers, we will look forward to a busier than usual summer and fall in 2020.”
We recommend you keeping track of your records throughout the year in order to ensure a safe tax filing season.
