Agenda

1. The First 30 Days: Intake, Identifying the Tax Obligations, Setting the Deadlines

   1. Current Federal Tax Rules, Rates, and Exclusion Amounts
   2. Current Fiduciary Income Tax Brackets and Their Impact on Distribution Timing Decisions
   3. The Tax Entities Created at Death - Decedent, Estate, Beneficiaries - and What Returns Each Triggers
   4. Hard Deadlines From Date of Death (DOD) and Every Federal Return the Estate May Require (Checklist)
   5. Gathering the Decedent's Prior Tax Returns and Identifying any Unfiled Years
   6. Obtaining the EIN for the Estate (Form SS-4)
   7. Identifying Assets, Account Types, and Beneficiary Designations, Flagging IRD Assets
   8. Allocating Tax Responsibilities Between Attorney, CPA, and Personal Representative

2. Sale of Real Property During Administration

   1. Applying Basis to Gain/Loss Calculation on the Sale
   2. IRC 121 Exclusion
   3. Installment Obligations as IRD: Form 6252 Reporting on the 1041
   4. FIRPTA Withholding for Real Property Held by Nonresident Decedents
   5. Timing Considerations

3. Estate Tax, Form 706, Portability, GST, and Post-Mortem Elections

   1. Portability and DSUE: To File or Not to File Form 706 (Late Elections Under Rev. Proc 2022-32)
   2. Post-Mortem Allocation Elections and Qualified Disclaimers (QTIP and Elective Share)
   3. Deductions: Charitable, Debts, Administration Expenses, etc.
   4. Allocating GST Exception Deliberately on Schedules R and R-1
   5. Filing Form 4768 for Extension
   6. Closely Held Business Interests Under IRC 6161 and 6166: Qualifying for Installment Payment Election

4. Income Tax Returns: The Final 1040 and the Estate's 1041

   1. Administration Expense Election Worksheet - 1040 vs. 706
   2. Final Year Estate Termination Checklist - IRC642(h) Carryovers to Beneficiaries
   3. Forms 1310, 4868, 7004 - Purpose, Deadline, and Instructions
   4. Timely Filing of Schedule K-1Fiscal Year Election

5. Asset Valuation and Tax Basis: Laying the Foundation for Every Return

   1. Tax Basis: The General Rule, Critical Exceptions, Community vs. Common Law
   2. Fair Market Value (FMV) Standard and Strategy
   3. Jointly Held Property Under IRC 2040
   4. Separating IRD Assets From Stepped-Up Basis Assets
   5. DOD vs. Alternative Valuation Date (AVD): Effect and Tradeoff
   6. Will Form 8971 Be Required?
   7. Closely-Held Business Interests Value and Discounts
   8. Promissory Notes and Receivables: Face Value vs. FMV Analysis
   9. Asset Inventory and Valuation Worksheet

6. Closing the Estate: Final Returns, Tax Clearance, and Safe Distribution

   1. Final Form 1041 Considerations
   2. Advising Beneficiaries: IRC642(h) Carryovers on the Final K-1 and IRC 6035 Basis Consistency Obligations
   3. Form 4810 Prompt Assessment Request
   4. Discharge From Personal Liability for Estate Tax: Form 5495
   5. IRS Notices and Audits of Returns Filed During Administration: Statutes of Limitations, Responses, and Amended Returns
   6. Solutions to Common Mistakes and Problematic Scenarios

7. Ethics for the Probate Tax Practitioner

   1. Engagement Agreements and Fees
   2. Confidentiality in the Estate Context
   3. Data Security and Client File Protection Checklist
   4. Attorney Liability for Distribution Before Tax Clearance
   5. Conflicts of Interest in Probate: Representing Both the Estate and Beneficiaries and Other Mistakes
   6. What to Add to Your Intake Conflict Screening Checklist