Announcement

Collapse
No announcement yet.

Deceased Client Owes Taxes?

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

    Deceased Client Owes Taxes?

    Client passed away in 2015 and owes past taxes on the Federal. He has had no taxable income in the last few years as he was on Social Security only. Does that past liability now disappear? Also, his body was donated to the university so no funeral director is involved. How does Social Security get notified to stop the SS payments?

    #2
    The past taxes due are an obligation of his estate. If there are any assets, they will be used to pay it. Also, whoever qualifies as Administrator or Executor or Personal Representative should notify SSA of his death.

    Comment


      #3
      Originally posted by Burke View Post
      The past taxes due are an obligation of his estate. If there are any assets, they will be used to pay it. Also, whoever qualifies as Administrator or Executor or Personal Representative should notify SSA of his death.
      Excellent point and pls. advise the next of kin that SS will demand back the checks paid after death. My neighbors son had to return 2 checks back to SS.
      Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

      Comment


        #4
        No Assets

        Originally posted by Burke View Post
        The past taxes due are an obligation of his estate. If there are any assets, they will be used to pay it. Also, whoever qualifies as Administrator or Executor or Personal Representative should notify SSA of his death.
        There are no assets. He lived with his wife but filed "married filing separate."

        Comment


          #5
          Then she should notify SSA of his death, as well as respond to the IRS notice of taxes due. There was no joint bank account? Where did his SS ck go? If into a bank account he had, where did the funds go?

          Comment


            #6
            Bad Advice from Attorney

            I recently had a client tell me his Attorney advised him "don't worry about filing your deceased Father In Law's delinquent returns". Apparently, the attorney thought the IRS wouldn't catch it and the heirs don't have to worry about their deceased relatives unfiled returns.

            His father in law was issued 1099 reporting NEC for both tax years, the IRS will never catch that....
            Circular 230 Disclosure:

            Don't even think about using the information in this message!

            Comment


              #7
              I recall seeing a form letter somewhere where you can inform IRS that the deceased taxpayer left no estate and that stops the collection efforts.

              Anyone else seen that?
              Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

              Comment

              Working...
              X