Decedents 2023 Form 1040 (not final return)

[Susan K]

Client died Jan 25,2024.  Before he died in 2024, he took a distribution from his retirement account that requires him to file a final Form 1040 in 2024.  He has an overpayment in 2023 but once I put his date of death in the 2023 Lacerte software, he cannot apply his overpayment to 2024.  We do not want a refund, we want the overpayment applied.  

If I test this in 2022 software, I CAN apply the overpayment with a date of death entered and I CAN schedule estimated tax payments..  

Why can't I enter a date of death and have the overpayment applied to 2024?

[IRonMaN]

Will it allow you to apply it if you opt out of e-filing and paper file the return?

[sjrcpa]

Or maybe omit the date of death?

[BobKamman]

Probably because IRS dictated to software developers that such credit-elects are not allowed.  Sometimes, death is inconvenient.  File it with a Form 1310 and let the recipient cash the check and write another one for 2024.  Are you sure the priority expenses, like administration and funeral costs, have been paid?  Those come before taxes.  

[Susan K]

all expenses have been paid except for IRS.  Where did IRS dictate this?  Do you have support for that statement?

[Susan K]

Yes but the overpayment still isn't applied. I would have to override if filed on paper.  We are trying to avoid that but it's an option.

[Susan K]

would work but not a good option, in my opinion.  I have to sign under penalties of perjury and so does the representative.  I'm not willing to do that.

[BobKamman]

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@Susan K wrote:

all expenses have been paid except for IRS.  Where did IRS dictate this?  Do you have support for that statement?

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Only software developers have access to the IRS dictates on what programs must or can allow.  

[Susan K]

Do you work for Lacerte?  If not, how do you have access to this information?  

[BobKamman]

[Susan K]

you know,  CPAs are from Missouri.  

[BobKamman]

I wouldn't know, I'm not a CPA.  

[IRonMaN]

Until today, I never realized I was from Missouri.  I wonder what else I don't know about myself. 🤔