CONTRIBUTED CONTENT: Dad didn't file taxes for 10 years. Now I'm the executor — what do I have to do?

Our office received the following question recently, and it presents an issue that many haven’t considered regarding duties one may have when you are in charge of an estate.

"My father recently died, and I am the executor of his estate, which is going through probate. My father had not filed or paid taxes for about 10 years prior to his death. Do I need to file or pay any taxes now that I am the executor? Do I have to do that before I distribute assets to myself and my siblings?"

The short answer to both questions is yes. Here's why, and how to protect yourself along the way.

Your Father's Tax Debts Didn't Die with Him

In Idaho, an executor is formally called the personal representative of the estate. One of your core duties is to settle the decedent's debts, and unpaid taxes are debts. Both the IRS and the Idaho State Tax Commission can pursue the estate for taxes, penalties, and interest your father owed.

And the older years haven't "expired." The usual three-year window to assess tax starts only when a return is filed. For unfiled years, both the IRS and Idaho can assess tax at any time.

The practical news is better. By policy, the IRS generally requires delinquent filers to file only the last six years, though it can demand more. Many non-filers — retirees living mostly on Social Security, for example — owed little or nothing. Any refunds, however, generally can't be recovered once three years have passed since a return's due date.

What Returns You May Need to File

You may need to file:

• Delinquent prior-year returns, federal (Form 1040) and Idaho (Form 40), for the years required.

• A final individual return for the year of death, due the following April.

• An estate income tax return (federal Form 1041) if the estate earns $600 or more during administration, and often an Idaho fiduciary return (Form 66).

You can likely cross two worries off your list. Idaho has no estate or inheritance tax, and the federal estate tax applies only to estates exceeding $15 million for deaths in

2026. But income taxes and estate taxes are not the same thing, and income taxes that are still owed must be dealt with.

Pay the Taxes Before You Distribute

This is where executors get into trouble. Idaho Code § 15-3-805 sets the order for paying claims when assets fall short: administration costs, funeral expenses, then debts and taxes with preference under federal law, followed by last-illness medical bills, Idaho-preferred debts and taxes, and all other claims. Heirs come only after every valid claim.

Federal law adds real teeth. Under 31 U.S.C. § 3713, a personal representative who pays other debts or distributes to heirs before paying federal taxes they knew or should have known about — leaving the estate unable to pay — can be personally liable up to the amount paid out. Given this father's history of not filing, that risk is real.

Don't rely on Idaho's four-month creditor claim period here, either; state claim deadlines generally do not bar the IRS. And if assets are distributed before the taxes are resolved, you and your siblings could be required to return them.

A Practical Roadmap

You will want to work through this only with the guidance of a CPA and an experienced probate attorney, but the basic process will look something like this:

1. Notify the IRS that you are the fiduciary by filing Form 56 with a copy of your Letters from the probate court.

2. Request tax transcripts from the IRS and the Idaho State Tax Commission to see what income was reported and what has been assessed.

3. Work with a CPA experienced in delinquent and decedent returns, and ask about penalty relief.

4. Hold back a reserve for likely taxes, penalties, and interest before any early distribution.

5. Limit your exposure. After filing, request a prompt assessment (IRS Form 4810), which generally gives the IRS 18 months to assess more tax on those returns, and a discharge from personal liability (Form 5495).

6. Distribute only after the taxes are paid and the creditor claim period has closed.

The Bottom Line

Your father's unfiled returns don't have to derail the estate, but they must be handled carefully and in the right order before anyone inherits. Doing it right protects the estate, your family relationships, and your own finances.

My law firm is currently offering free telephonic, electronic, or in-person consultations concerning probating estates or creating estate planning documents.

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Robert J. Green is an Elder Law, Trust, and Estate Planning Attorney and the owner of Kootenai Law Group, PLLC in Coeur d’Alene. If you have questions about estate planning, probates, wills, trusts, or powers of attorney, contact Kootenai Law at 208-765-6555, [email protected], or visit www.KootenaiLaw.com.

This has been presented as general information and not as legal advice. Do not engage in legal decision-making without the advice of a competent attorney after discussion of your specific circumstances.