Contents Important Changes   ............................ 2 Important Reminders  ......................... 2 Introduction  ........................................ 2 Personal Representatives   ................. 2 Duties .............................................. 3 Fees Received by Personal Representatives ....................... 3 Final Return for Decedent  ................. 4 Filing Requirements  ........................ 4 Income To Include  .......................... 4 Exemptions and Deductions  ........... 5 Credits, Other Taxes, and Payments ................................. 6 Name, Address, and Signature  ...... 7 When and Where To File  ............... 7 Tax Forgiveness for Deaths Due to Military or Terroristic Actions  ... 7 Filing Reminders  ............................. 8 Other Tax Information   ....................... 8 Tax Benefits for Survivors  .............. 8 Income in Respect of the Decedent 8 Deductions in Respect of the Decedent .................................. 11 Estate Tax Deduction  ..................... 11 Gifts, Insurance, and Inheritances .. 11 Other Items of Income  .................... 13 Income Tax Return of an Estate–Form 1041   ....................... 14 Filing Requirements  ........................ 14 Income To Include  .......................... 15 Exemption and Deductions ............. 16 Credits, Tax, and Payments  ........... 18 Name, Address, and Signature  ...... 18 When and Where To File  ............... 18 Distributions to Beneficiaries From an Estate   ...................................... 18 Income That Must Be Distributed Currently  .................................. 19 Other Amounts Distributed  ............. 19 Discharge of a Legal Obligation  ..... 19 Character of Distributions  ............... 19 How and When To Report .............. 20 Special Rules for Distributions  ....... 20 Termination of Estate  ..................... 21 Form 706   ............................................. 22 Comprehensive Example   .................. 22 Final Return for Decedent  .............. 23 Income Tax Return of an Estate–Form 1041  ................... 23 How To Get More Information   .......... 24 Checklist of Forms and Due Dates  .. 38 Worksheet To Reconcile Amounts Reported ....................................... 39 Index  .................................................... 40 Department of the Treasury Internal Revenue Service Publication 559 Cat. No. 15107U Survivors, Executors, and Administrators For use in preparing 1999  Returns