CCA 201302027: Advice on treating an executor as a deceased taxpayer's fiduciary

Plain-English summary

Chief Counsel Advice addresses an executor's status as the fiduciary of a deceased taxpayer's estate. The advice states that the IRS need not require a court order appointing the executor before treating the executor as the fiduciary under section 6903. It says the IRS may disclose the deceased taxpayer's return information to the executor if the request is in writing and the disclosure would not seriously impair federal tax administration. It also says that a notice of deficiency should be mailed to both the executor's address and the decedent's last-known address. The advice notes possible transferee liability if the executor pays estate debts before an unpaid income tax liability and the estate lacks sufficient funds.

Ruling snapshot

• Question: How should the IRS treat an executor in relation to a deceased taxpayer's fiduciary status, disclosures, and notices?
• Outcome: Advice given.
• Key authorities: IRC §§ 6901 and 6903; 31 U.S.C. § 3713; IRM §§ 4.8.9 and 11.3.2.4.11.

Full text (IRS public release)

ID: CCA_2012100209431646 Number: 201302027
Release Date: 1/11/2013
Office: ----------------------------
UILC: 6903.00-00

From: ------------------
Sent: Tuesday, October 02, 2012 9:43:17 AM
To: --------------
Cc: --------------------------------------------------------------------------------------------- Subject: RE: Form 56 and Disclosure questions

Hi ------ -

We coordinated this matter with ----- and --------. Based on ------- advice that the son, as executor, should be treated as the fiduciary of the estate for federal income tax purposes, you do not need the son to show a court order appointing him as executor of the estate in order to treat him as fiduciary in accordance with section 6903. As the son is the executor, you may disclose the deceased taxpayer's return and return information to him as long as the disclosure of return information would not seriously impair Federal tax administration. In order to disclose the deceased taxpayer's return, however, the son's request must be in writing. Please see IRM 11.3.2.4.11 for more information. Because the son is to be treated as the taxpayer's fiduciary, any notice of deficiency must be mailed to the son's address as well as the decedent's last known address. Please see IRM 4.8.9, in general, and IRM 4.8.9.8.2.6 regarding fiduciary relationships, for more information.

You may also wish to consider transferee liability against the son as fiduciary if he pays debts of the estate before paying any unpaid income tax liability of the decedent and if there are insufficient funds in the estate to pay the tax liability. See sec. 6901; 31 U.S.C. sec. 3713.

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Please let me know if you have any questions or would like to discuss.

Thanks,

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