Most of us think in terms of before we die, and after we die — that stark division. Once we die, all that came before is erased.
Except that can be a misleading notion. Unfortunately, some things that came before, like taxes, for example, live on after death.
And when it comes to outstanding tax liabilities, the IRS can be relentless in pursuing them. The agency can take steps to ensure unpaid taxes are settled with the estate, which can complicate matters for heirs and executors.
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Understanding this is important for effective estate planning. Here’s more of what you need to know about how to deal with the tax liabilities of a deceased person.
Meet the Whittemores: A case study
Historic Townsend, Massachusetts, was incorporated in 1732. Quaint and picturesque, the church, original meeting house, and town commons retain their 18th-century charm.
James W. Whittemore and his wife, Carlene R. Whittemore, lifelong residents of Townsend, were married in 1972. The couple raised a family of five children.
In 2008, the Whittemores filed their federal tax return, listing their status as married filing jointly.
- They did not pay the taxes due.
- Filing their return but leaving their tax liabilities unpaid became a yearly pattern through 2014.
- The IRS repeatedly issued notices and demands to the Whittemores for payment of their tax liabilities, but the couple never responded.
James Whittemore passed away unexpectedly in 2017 without a will.
After Whittemore’s death, neither Mrs. Whittemore nor anyone else started probate proceedings in the Massachusetts court. Because there was no probate, no one was appointed as executor of James Whittemore’s estate.
The IRS pursues the Whittemores
In 2024, the IRS filed a complaint in a Massachusetts federal court against Mrs. Whittemore, in her capacities as an individual and as the executor of her husband’s estate. The agency asked the court to award them $241,000 in unpaid tax liabilities owed by the Whittemores.
Mrs. Whittemore responded to the IRS’s complaint in her individual capacity.
- She denied that she was the executor of her late husband’s estate.
- No probate proceeding had been started after his death.
- Because the estate wasn’t probated, she argued, couldn’t be the executor.
About half a year passed before the court took up the matter again. This time, the IRS asked the court to find that Mrs. Whittemore was the estate’s de facto executor.
The court determined Mrs. Whittemore was the de facto executor, but not for the reasons the IRS advanced. The court pointed out that the Internal Revenue Code defines the term “executor” broadly, to include persons who are in actual or constructive possession of a decedent’s estate.
Second, under Massachusetts’s law, if a spouse dies without a will and the children are descended from both spouses, the surviving spouse is the estate’s sole heir if the surviving spouse has no other children. The Whittemores had five children, and all are descendants of both spouses. Mrs. Whittemore had no other children.
Between the federal and Massachusetts laws, the court concluded that Mrs. Whittemore was the sole heir and was in actual possession of her late husband’s entire estate. She therefore qualified as the estate’s de facto executor.
The court ordered the parties to submit a joint order as to the IRS’ claims against the estate and against Mrs. Whittemore in her executor and individual capacities.
The case is: United States v. Estate of Whittemore, Dkt. No. 1:24-cv-11670 (D. Mass. Dec. 16, 2025).
Please note that Whittemore is a single case based on a particular set of facts and should not be taken to apply to other instances concerning estates and taxes.
The dead pay taxes, too
If nothing else, United States v. Estate of Whittemore is a reminder that death isn’t a tax loophole. If you’re handling a loved one’s final affairs, here are a few points to keep in mind.
1. Death doesn’t erase a tax debt. A tax liability isn’t extinguished when the debtor dies. The debt is transferred to the estate and must be satisfied from estate assets. If assets were held jointly and a federal tax lien was filed against the debtor before death, the lien can still attach to the debtor’s former interest in the asset.
2. Probate is important. It may be tempting to skip probate of an estate because it can be time-consuming and expensive. But probate’s primary purpose is to see that debts are paid, assets are distributed to the right beneficiaries, and disputes are resolved.
3. The executor is the person with the legal authority to act on behalf of the estate. Under normal circumstances, without that authority, no one has the legal standing to access bank accounts or transfer assets. If the deceased owed taxes to the federal government and there was no executor, the government could bring a suit as it did in Whittemore.
4. When someone dies, it’s important to consider their final tax return. That would involve listing their income and expenses in the year they died, much as if they were living, including marital filing status and dependents. File the decedent’s final Form 1040 (joint if married). Estates with $600 or more in gross income after death must file Form 1041; consult IRS Publication 559.
If you have questions about or are dealing with a deceased’s estate, it’s important that you consult an attorney experienced in handling estate matters.
