With how IRS and state needs receipt for everything; will you need receipt from funeral home to prove you are dead..and not longer be taxed?

You'd get that from your county and it's called a death certificate. 

No.  Because your income is still taxed after you die; proving you are dead won't stop them.

it's called a death certificate

A recipe for everything?  Maybe if you are a business owner and are claiming write-offs.  For regular people, you don't need to provide receipts. I've been doing my own taxes for decades, I own a house and have investments.  I've never had to provide receipts. 

State Certificate of Death would be used.