Oct292025
Probate Q&A Series

What documentation do I need to show the IRS that my parent’s taxes were paid properly? – North Carolina

Short Answer

In North Carolina, the personal representative (the court‑appointed executor or administrator) is the only person the IRS will recognize to discuss and resolve the decedent’s taxes. You will need Letters (testamentary or of administration) from the Clerk of Superior Court, IRS Form 56 to notify the IRS of the fiduciary, an estate EIN, and signed authorizations for any CPA. Keep copies of all filed returns, IRS account transcripts, proof of payments, and the estate’s court‑filed accountings with receipts.

Understanding the Problem

In North Carolina probate, can you show the IRS that your parent’s taxes were handled correctly, and what papers do you need to do it? Here, a successor CPA found a large unpaid tax and penalties, but cannot speak to the IRS until someone is appointed. You want to protect the surviving spouse and access frozen joint accounts while proving to the IRS that all required returns were filed and taxes paid.

Apply the Law

Under North Carolina law, a personal representative (PR) must be appointed by the Clerk of Superior Court and then gather assets, give notice to creditors (including the IRS), pay valid claims in the proper order, and account to the court. For federal tax administration, the PR should notify the IRS of the fiduciary relationship (Form 56), obtain an estate EIN (SS‑4), and use the correct authorizations (Form 2848 for representation or Form 8821 for information) so a CPA can obtain transcripts and communicate with the IRS. The PR must file the decedent’s final income tax return (Form 1040) and any required estate fiduciary returns (Form 1041) and keep vouchers and bank records to support payments—the same documentation the Clerk will expect in the estate’s accounts. Government tax claims are treated as claims of the estate and may require reaching non‑probate funds (such as certain joint accounts) if probate assets are insufficient.

Key Requirements

  • Authority to act: Court‑issued Letters of Administration or Letters Testamentary so the IRS and banks will recognize you.
  • IRS notice and access: File IRS Form 56; obtain an EIN (SS‑4); use Form 2848 (representation) or Form 8821 (information) for your CPA.
  • Required filings: File the decedent’s final Form 1040 and, if the estate has $600+ of gross income or distributes income, a Form 1041 for the estate; extend if needed.
  • Proof of payment: Keep canceled checks, bank statements from the estate account (using the EIN), IRS account transcripts showing balances paid, and any IRS notices/receipts.
  • Estate records: Publish and mail creditor notices, file the inventory within 3 months, and file annual/final accounts with vouchers; do not distribute before resolving tax claims.
  • If assets are short: The PR may need to recover certain survivorship or POD funds to pay government tax claims after other estate assets are exhausted.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the CPA has no authority without Letters, you should open probate so the Clerk issues Letters of Administration; only then will the IRS and banks speak with you. After you file Form 56 and obtain an EIN, your CPA can use Form 2848 or 8821 to pull IRS transcripts, verify balances, and file/resolve the decedent’s final Form 1040 and any Form 1041 for the estate. If probate assets are not enough to pay the IRS, the PR may have to recover part of certain joint or beneficiary accounts for tax claims before any distribution.

Process & Timing

  1. Who files: Nearest next of kin or interested person. Where: Clerk of Superior Court (Estates Division) in the North Carolina county of the decedent’s domicile. What: Application for Letters of Administration (AOC‑E‑202), death certificate, and bond if required. When: As soon as practical to gain authority.
  2. Notify and set up IRS access: Get an estate EIN (IRS Form SS‑4); file IRS Form 56; execute Form 2848 (for representation) or Form 8821 (for information) so the CPA can obtain transcripts and speak to the IRS. Publish and mail creditor notices; file the inventory within 3 months of qualification. Timelines can vary by county for clerk review.
  3. File, pay, and prove: File the decedent’s final Form 1040 and any required Form 1041 for the estate; pay balances from the estate account; keep canceled checks, bank statements, IRS notices, and account transcripts. File annual/final accounts with vouchers; after approval, expect an order closing the estate and discharging the PR.

Exceptions & Pitfalls

  • No authority, no access: The IRS and banks will not discuss tax accounts with a CPA or family member until Letters are issued and Form 56 is on file.
  • Use the right authorization: Form 2848 allows representation; Form 8821 only authorizes information sharing. Pick the correct one for your CPA.
  • Don’t commingle: Open an estate account using the EIN; pay taxes from that account and keep vouchers and bank statements for the court and IRS.
  • Prioritize tax claims: Government tax claims must be addressed before distributions; paying lower‑priority claims first can expose the PR to liability.
  • Joint/POD funds may be reachable: If probate assets are short, the PR may need to recover part of certain survivorship or beneficiary accounts to pay taxes before distributing anything.

Conclusion

To show the IRS that your parent’s taxes were paid properly in North Carolina, you must act as the court‑appointed personal representative, notify the IRS (Form 56), obtain an estate EIN, file the required returns (Form 1040 and, if applicable, Form 1041), pay from the estate account, and keep transcripts, canceled checks, and vouchers to support the estate’s court‑filed accounts. Next step: open probate and obtain Letters of Administration from the Clerk of Superior Court.

Talk to a Probate Attorney

If you’re dealing with unpaid taxes, frozen accounts, and the IRS after a death, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.

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: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.