Trustee-Executor and deceased taxpayer tax returns

[S T]

Question arose - Would a trustee/executor of deceased taxpayer's Estate be responsible for furnishing information in the event of an audit of the deceased's prior years tax returns?

Example - taxpayer deceased year 2015, IRS sends notice for year 2012, does Trustee/Executor have a duty to furnish the required information for the IRS audit

Thanks

Sandy

[ATSMAN]

Does the executor have access to the information? If the estate is still open then yes!

[S T]

Trustee/Executor is (happens to be son) is going through the Old Tax records and is asking how many years for retention and what can be purged, and then the question arose

Yes, acess to the records

Sandy

[Roland Slugg]

Yes. In fact in many cases there is no one else who could do it.

One of the duties of an executor (or other personal representative) is to ...

pay the tax determined up to the date of discharge from duties. (Source: IRS Pub 559, page 2.)

Regarding the records retention question I would advise the son to keep his dad's tax records for at least three years after each tax return's due date ... six years minimum for large and/or complex returns where the 6-year SOL might be a concern.

I trust you're also aware that an executor can (and should) apply for early determination of tax and to be formally discharged from liability for taxes. These subjects are covered in IRS Pub 559.

[TAXNJ]

Digital copies

Trustee/Executor is (happens to be son) is going through the Old Tax records and is asking how many years for retention and what can be purged, and then the question arose

Yes, acess to the records

Sandy

In addition to following the legal responsibilities of an an executor and tax records retention,
See. http://www.irs.gov/taxtopics/tc305.html

You might want to offer the additional service of digital copy of all the necessary documents and supporting data for the client if the client may be concerned with the volumns of paper storage.

[ATSMAN]

In addition to following the legal responsibilities of an an executor and tax records retention,
See. http://www.irs.gov/taxtopics/tc305.html

You might want to offer the additional service of digital copy of all the necessary documents and supporting data for the client if the client may be concerned with the volumns of paper storage.

It may be a good idea for the executor of the estate to get transcripts of account for the last 3 years as well. I have recommended that when the decedent had a spotty record of tax liability payment and records are spotty as well.

[TAXNJ]

And legal

It may be a good idea for the executor of the estate to get transcripts of account for the last 3 years as well. I have recommended that when the decedent had a spotty record of tax liability payment and records are spotty as well.

Yes, in addition to tax responsibilities, there are the possible "personal" legal responsibilities of an executor - see general reference below:

http://www.executorscorner.com/resources/the-executors-personal-liability-for-debts.html

[ATSMAN]

Good information. I would just caution those of us who are not lawyers to make sure your client understands that you are not giving legal advice.

Too often I find many of my clients wanting to know all the info from "one source" regardless of their expertise.

[TAXNJ]

Absolutely and

Good information. I would just caution those of us who are not lawyers to make sure your client understands that you are not giving legal advice.

Too often I find many of my clients wanting to know all the info from "one source" regardless of their expertise.

ABSOLUTELY. One must and should know when and where to draw the line on legal questions, if they are not an attorney, they should recommend preferably a Tax Attorney. Many states prohibit a non attorney from giving legal advice. Info referenced is for a preparers knowledge base and if decided to share that with the client and then tell them to consult a Tax Attorney with those legal matters and consider incorporating in their preparer's engagement letter that the preparer does not provide legal advice.

Do you know there are states that prohibit (some a felony charge) the use of the title/designation "accountant"; "public accountant" (unless grandfathered before state law change); CPA" unless they have the state license. One should always check with their state law before using such titles.

[S T]

Thanks all for the posts and information.

Sandy