Announcement

Collapse
No announcement yet.

1041 Mystery, Where to Start?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    1041 Mystery, Where to Start?

    The son of a former client came in today. He is the PR for his father who died July 2011. We prepared the final return for his father and he indicated he was working with an attorney on the rest. He came in now because he was confused about the process and wanted a second look.

    The estate was just short of $1 mil and included rental houses and a installment agreement. There were 5 revisions of the inventory. All but 1 of the houses have been sold, some in 20122 and some in 2012 and the installment agreement property is in default.

    When I asked about the 1041 he had no idea. Looking through the attorney’s paperwork I can’t find any sign of an EIN. The bank interest, mortgage statements and 1099 forms for rent are all addressed to the estate but all have the decedents SSN on them. I don’t have enough information to know if the estate has taxable income or not but there is the installment agreement and the carrying cost of the properties to consider.

    Should I pull an EIN and file the old return or just run?
    In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
    Alexis de Tocqueville

    #2
    Get permission from the son and talk to the attorney to see what filing, if any has been done. Be prepared to educate them on the filing requirements and how you can help him. I did something similar for a client once and now do the estates for the attorney. I also got the attorney as a client too.

    Comment


      #3
      Whether you should run or not depends on what you are willing to do to help the guy out. But it can be resolved, applying for an EIN and filing the old tax returns. That should be done regardless of who does it. I think you can be a hero in this case. Like the good witch of the North said in The Wizard of Oz, "it is always best to start at the beginning...."

      Comment

      Working...
      X