Income in respect of a decedent (IRD) is money meant for a person who has already died. It goes to the estate or beneficiary but must be declared as such, the deceased person's property. This money will be be taxed to whoever claims it.
Income in respect of a decedent might come from retirement benefits, unintentional posthumous payments, or late payments for services and products.
Since IRD cannot be collected by the intended beneficiary, it goes instead to their estate as part of their property. The money will be taxed to whoever claims it and should be classified as IRD on tax forms.
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