Posted on April 26, 2006 at 16:48:45:
A decedent’s estate is essentially a person, as far as tax law is concerned. The estate must file both an estate tax return and an income tax return to cover the period of estate administration. Generally, the tax return is due 3 ˝ months after year-end.
But if the estate needs more time to prepare the returns – or wants more time before paying any tax due – the simplest option is to file using a fiscal year instead of a calendar year. The fiscal year begins in the month of the decedent’s death. Say, for instance, that the individual dies in July. Ordinarily, the tax return would be due
3 ˝ months after the end of the year, or by the following April 15. Moving to a fiscal year gains six months; the return is not due until October 15.
If still more time is needed, the IRS has eased extension rules. Estates can use Form 7004 to request six additional months – up from two months – to file.