Jan272026
Probate Q&A Series

Can I use an out-of-state CPA to file a deceased parent’s final tax return and handle any state tax notices from another state? – North Carolina

Short Answer

In North Carolina, an estate administrator can generally hire an accountant, including an out-of-state CPA, to prepare and file a deceased parent’s final returns and help respond to tax notices. The key is that the administrator (not the CPA) remains responsible for making sure returns are filed correctly and on time, and for signing where required. If another state sends a notice or claims a filing obligation, it often makes sense to involve a professional who understands that state’s rules, because each state’s procedures and deadlines can differ.

Understanding the Problem

Under North Carolina probate practice, can an estate administrator hire an out-of-state CPA to prepare and file a deceased parent’s final tax return and then communicate with tax agencies if a different state later sends a tax notice? The decision point is whether North Carolina law requires a North Carolina-licensed CPA for this work, or whether an administrator can use an out-of-state professional while the administrator remains the person accountable for the estate’s tax compliance.

Apply the Law

North Carolina law places the duty to file required tax returns on the personal representative (executor/administrator), but it does not generally require that the preparer be located in North Carolina. Practically, an administrator can hire a CPA from another state to prepare the decedent’s final individual income tax return and any fiduciary income tax returns for the estate, and to help respond to notices. The administrator should expect to sign returns (or authorize e-filing) and to sign any power-of-attorney/authorization forms needed so the CPA can speak to the IRS or a state revenue department about notices.

Key Requirements

  • Administrator remains responsible: Even when a CPA prepares the returns, the administrator is still the person legally responsible for making sure required returns are filed and taxes are paid from estate funds when due.
  • Correct return type: A “final” return is usually the decedent’s last individual income tax return for the year of death, and the estate may also have its own fiduciary income tax filing duties if the estate earns income during administration.
  • Multi-state issues must be screened: Another state may require a return or may send a notice if the decedent lived there part of the year, earned income sourced there, or owned property located there. Handling those issues often requires state-specific knowledge and sometimes local counsel.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In the inventory phase, the administrator is already collecting account information, dealing with claims, and planning a court-involved sale because a minor heir has an interest. Those same records (income documents, bank interest, mortgage interest, sale documents, and estate expenses) are typically what a CPA needs to prepare the decedent’s final return and determine whether the estate needs its own fiduciary return. If a tax notice arrives from another state, it often ties back to where income was earned, where property sits, or where the decedent lived during the year of death—issues that can be addressed, but usually require careful fact gathering and state-specific rules.

Process & Timing

  1. Who hires and signs: The estate administrator hires the CPA and remains the signer/authorizer for filings. Where: Returns and responses are filed with the IRS and the North Carolina Department of Revenue, and any other state revenue department that asserts a filing duty. What: The decedent’s final individual income tax return and, if required, an estate fiduciary income tax return. When: North Carolina fiduciary returns are generally due by April 15 for calendar-year reporting, or by the 15th day of the fourth month after the estate’s fiscal year ends, subject to extensions.
  2. Authorization to talk to tax agencies: If the CPA will handle notices, the administrator typically signs the appropriate authorization so the CPA can obtain transcripts, discuss the file, and submit responses. Without that authorization, agencies often will not speak with the CPA.
  3. Respond to notices and document the file: When a notice arrives (North Carolina or another state), the administrator and CPA should calendar the response deadline, gather supporting documents (W-2/1099s, closing statements, proof of residency factors, estate expense records), and send a complete response. If the notice comes from another state, consider involving a professional familiar with that state’s process.

Exceptions & Pitfalls

  • Another state may still require a filing: Using an out-of-state CPA does not eliminate another state’s ability to claim a return is required (for example, if the decedent lived there part of the year or had income or property tied to that state).
  • Residency and “source of income” disputes: Multi-state notices often turn on facts like where the decedent actually lived at death, where wages were earned, and where real estate is located. In close cases, consistent documentation matters.
  • Estate vs. decedent filings get mixed up: The decedent’s final individual return and the estate’s fiduciary return are different filings with different reporting periods. Confusing them can trigger avoidable notices.
  • Missing signatures/authority: Even a well-prepared response can be rejected if the administrator does not sign where required or if the CPA lacks proper authorization to communicate with the agency.

For related probate timing issues that often overlap with tax work during administration, see creditor claims and selling real property to pay debts and approvals needed to sell estate real estate before distributions.

Conclusion

In North Carolina, an estate administrator can generally use an out-of-state CPA to prepare and file a deceased parent’s final tax return and to help respond to tax notices, including notices from another state. The administrator still carries the legal responsibility to ensure the correct returns are filed and that deadlines are met, and the CPA usually needs written authorization to speak with tax agencies. A key timing rule is that North Carolina fiduciary returns are generally due by April 15 (or the 15th day of the fourth month after a fiscal year ends). The next step is to sign an authorization so the CPA can obtain and respond to any notices promptly.

Talk to a Probate Attorney

If an estate administration includes final returns, possible out-of-state tax notices, and court involvement (such as a sale affecting a minor heir), our firm has experienced attorneys who can help explain options and timelines and coordinate with accountants as needed. Call us today at [CONTACT NUMBER].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.