Publication 559: Survivors, Executors, and Administrators; Publication 559 Introductory Material

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Table of Contents

Important Changes

Combat zone. . Special rules apply if a member of the Armed Forces of the United States dies while in active service in a combat zone or from wounds, disease, or injury incurred in a combat zone. See Tax Forgiveness for Deaths Due to Military or Terrorist Actions, later. For other tax information for members of the Armed Forces, see Publication 3, Armed Forces' Tax Guide.

Benefits for public safety officers' survivors. For tax years beginning after 2001, a survivor annuity received by the spouse, former spouse, or child of a public safety officer killed in the line of duty generally will be excluded from the recipient's income regardless of the date of the officer's death. Survivor benefits received before 2002 were excludable only if the officer died after 1996. The provision applies to a chaplain killed in the line of duty after September 10, 2001. For more information, see Public safety officers, later.

Rollovers by surviving spouses. For distributions after 2001, an employee's surviving spouse who receives an eligible rollover distribution may roll it over into an eligible retirement plan, including an IRA, a qualified plan, a section 403(b) annuity, or a section 457 plan. For plan distributions before 2002, surviving spouses could only roll the distribution over into an IRA.

Estate tax return. Generally, if the decedent died during 2002, an estate tax return (Form 706) must be filed if the gross estate is more than $1,000,000.

Estate tax repeal. The estate tax is repealed for decedents dying after 2009.

Important Reminders

Specified terrorist victim. . The Victims of Terrorism Tax Relief Act of 2001 is explained in Publication 3920, Tax Relief for Victims of Terrorist Attacks. Under the Act, the federal income tax liability of those killed in the following attacks (specified terrorist victim) is forgiven for certain tax years.

Qualified disaster relief payments made after September 10, 2001, to cover personal, family, living, or funeral expenses incurred because of a terrorist attack.
Certain disability payments received in tax years ending after September 10, 2001, for injuries sustained in a terrorist attack.
Certain death benefits paid by an employer to the survivor of an employee because the employee died as a result of a terrorist attack.
Debt cancellations made after September 10, 2001, and before January 1, 2002, if the debts were cancelled because an individual died as a result of the September 11 attacks or the anthrax attacks.
Payments from the September 11th Victim Compensation Fund of 2001.

The Act also reduces the estate tax of individuals who die as a result of a terrorist attack.

Consistent treatment of estate and trust items. Beneficiaries must generally treat estate items the same way on their individual returns as they are treated on the estate's return.

Individual taxpayer identification number (ITIN). The IRS will issue an ITIN to a nonresident or resident alien who does not have and is not eligible to get a social security number (SSN). To apply for an ITIN, file Form W–7, Application for IRS Individual Taxpayer Identification Number, with the IRS. It usually takes 4 to 6 weeks to get an ITIN. An ITIN is for tax use only. It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U.S. law.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1–800–THE–LOST (1–800–843–5678) if you recognize a child.

Introduction

This publication is designed to help those in charge of the property (estate) of an individual who has died (decedent). It shows them how to complete and file federal income tax returns and points out their responsibility to pay any taxes due.

A comprehensive example, using tax forms, is included near the end of this publication. Also included at the end of this publication are the following items.

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Useful Items - You may want to see:

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Publication 559Introductory Material

Important Changes

Important Reminders

Introduction

Useful Items - You may want to see:

Publication 559
Introductory Material