Do You Have to Notify the IRS of a Death?

A family member has passed away, and you’re now handling their affairs. You know there are accounts to close, bills to pay, and a mountain of paperwork ahead. But do you also need to notify the IRS that someone has died?

Yes — and in more ways than you might think. While there is no single “death notification form” to send the IRS, executors and surviving family members have several tax-related obligations that effectively serve as formal notice. Missing these filings can trigger penalties, interest, and serious complications during estate administration.

How the IRS Learns About a Death

The Social Security Administration (SSA) typically notifies the IRS when a person dies. Once the funeral home reports the death to Social Security — which is standard practice — the information is shared with the IRS through an interagency data exchange.

But this automated process does not relieve you of your responsibilities. The IRS still expects specific tax returns to be filed on behalf of the deceased, and in many cases, on behalf of the estate itself. Waiting for the IRS to “figure it out” is not a strategy — it’s a path to penalties.

Tax Returns Executors Must File to Notify the IRS of a Death

As the personal representative of the estate, you are legally responsible for several filings:

1. Final Individual Income Tax Return (Form 1040)

This covers income the decedent earned from January 1 of the year of death through the date of death. It is due on the normal filing deadline — April 15 of the following year.

When preparing this return:

• Write “DECEASED” across the top, along with the decedent’s name, Social Security number, and date of death
• Report all income earned through the date of death — wages, investment income, Social Security benefits, retirement distributions
• Claim any deductions and credits the decedent would have been entitled to
• If you are the surviving spouse, you may file a joint return for the year of death and sign on behalf of the decedent

2. Estate Income Tax Return (Form 1041)

If the estate earns any income after the date of death — interest on bank accounts, rental income, dividends, or gains from asset sales during administration — you must file Form 1041. This requires obtaining a separate Employer Identification Number (EIN) for the estate, which you can apply for through the IRS website.

Form 1041 is due on the 15th day of the fourth month after the estate’s tax year ends. Most estates use a calendar year, making the deadline April 15.

3. Federal Estate Tax Return (Form 706)

This return is only required for estates exceeding the federal estate tax exemption. For individuals dying in 2025, that threshold is $13.99 million. Most estates fall well below this amount and do not need to file Form 706.

Even for estates below the threshold, filing Form 706 can be beneficial in some situations — particularly for married couples using portability to transfer the deceased spouse’s unused exemption to the surviving spouse.

North Carolina Does Not Have a Separate Estate or Inheritance Tax

One piece of good news for North Carolina families: the state does not impose its own estate tax or inheritance tax. This means your tax obligations after a death are primarily federal.

However, if the decedent:

• Owned property in another state that does impose an estate or inheritance tax
• Had income from sources in other states
• Was a resident of another state at the time of death

…additional state-level filings may be required. An estate attorney or tax professional can help identify any multi-state obligations.

How to Formally Notify the IRS of Your Authority as Executor

To communicate directly with the IRS on behalf of the estate, you should file IRS Form 56 (Notice Concerning Fiduciary Relationship). This form officially tells the IRS:

• You are the authorized representative of the decedent’s estate
• All tax-related correspondence should be directed to you
• You have the legal authority to act on the estate’s behalf for tax matters

Filing Form 56 is especially important if the decedent had outstanding tax issues, owed back taxes, or was under audit. Without it, the IRS may continue sending notices to the decedent’s last known address — and you may never see them.

Key IRS Deadlines Executors Cannot Miss

Missing a tax deadline creates unnecessary costs for the estate. Here are the critical dates to track:

Filing	Deadline
Final Form 1040	April 15 of the year after death
Form 1041 (estate income)	15th day of the 4th month after tax year ends
Form 706 (if required)	9 months after date of death (6-month extension available)
Form 56	As soon as practical after appointment

Extensions are available for most of these filings, but they must be requested before the original deadline. Filing late without an extension can result in penalties of 5% per month on unpaid tax.

Working with both a probate attorney and a tax professional helps ensure no deadline is missed. Our guide to the probate process explains how these tax obligations fit into the broader estate administration timeline.

Our Attorneys Help Executors Navigate Every IRS Requirement

Tax filings are just one piece of the estate administration puzzle. Our personalized approach means we coordinate with your tax professionals, track every deadline, and walk you through each step — so nothing falls through the cracks.

Schedule a free Discovery Call to discuss your estate administration needs. We’ll then recommend a free Initial Strategy Meeting with one of our attorneys to outline your options and pricing.

We proudly serve all of North Carolina, with attorneys based in Cary, Raleigh, and Chapel Hill. Contact us for the support you deserve.