I have completed a huge estate tax return (not requiring form 706 due to value being under $ 5,250,000.00) but filing an initial estate tax return "form 1041". I had to go back to tax year 2006 to review the estate tax return filed for the deceased spouse who passed on 1/10/2006 and at that time their estate was valued in excess of $ 13,000,000.00 and there was ABC Trust established transferring a huge portion of assets to the B and C Trust ( "Q-Tip). I noticed the SS-4's for each B and C Trusts but I also noticed that there were never any Trust Returns filed for tax years 2016 thru 2014. There was much business real estate rentals involved and as a result I had to basically prepare (Not file) the Trust Tax Returns for tax years 2006 thru 2014 in order to complete my Estate Accounting for the deceased who died on June 5, 2015. I also had to reconstruct the deceased personal income tax returns for 2006 thru 2014 due to a very large amount of "Gross Negligence and borderline Fraud" in order to complete my estate accounting. The deceased underpaid all tax years 2006 thru 2014 in excess of $ 275,000.00 not including penalties and interest that could be assessed. The only personal returns that are withing the three year statute were 2013 and 2014 which I have presented to the beneficiaries for filing timely. Tax years 2006 thru 2012 are outside the three year statute. At this point I am in the process of disengaging my services any further as I have completed an Estate Accounting thru May 31, 2016. I am going to Sign, Date and present to the beneficiaries the Trust Tax Returns for Tax Years 2006 thru 2014 and inform them that they should be filed accordingly. (CAN SOMEONE ADVISE ME IF THERE IS A STATUTE OF LIMITATIONS IF YOU DO NOT FILE A TRUST TAX RETURN AND WHAT IRS CODE SECTIONS STATES THAT LAW.
A very concerned Tax Practitioner Enrolled Agent
A very concerned Tax Practitioner Enrolled Agent
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