The estate executor can engage Chan & Naylor to prepare tax return and Financial Statement each year until the Estate is wound up upon fully disbursing its assets to beneficiaries. An estate administrator may have to file different types of tax returns such as income tax returns for the decedent (Form 1040), income tax returns for the estate (Form 1041) and estate tax return (Form 76) for large estates.
A tax identification number for the estate may be needed. Income tax return is required if assets of the estate generate more than $600 in annual income. If the estate operates a business, a new employer identification number is needed. The estate administrator will need to report wages or income and pay taxes due.