Administrator responsible for Decedent Tax

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  • S&D Associates
    Member
    • Jan 2008
    • 91

    #1

    Administrator responsible for Decedent Tax

    Is the administrator responsible for decedent income tax. Client distributed inheritance before paying back income tax. Would the administrator be responsible for back taxes?
  • Dusty2004
    Senior Member
    • Dec 2009
    • 374

    #2
    It is the administrators responsibility to file all appropriate tax returns. Hopefully, if taxes are owed, he can get some of the money back.

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    • TAXNJ
      Senior Member
      • Jan 2007
      • 2106

      #3
      Originally posted by S&D Associates
      Is the administrator responsible for decedent income tax. Client distributed inheritance before paying back income tax. Would the administrator be responsible for back taxes?
      Read The Tax Book 21-7 for duties and responsibilities
      Always cite your source for support to defend your opinion

      Comment

      • Burke
        Senior Member
        • Jan 2008
        • 7068

        #4
        If distributions are made incorrectly or prematurely, the administrator must recover the funds necessary to take care of outstanding debts. Normally, documents are signed before closing the estate which certify all taxes of whatever kind have been satisfied and paid, or sufficient funds have been held back in order to cover them. This is the procedure at least in my state. Did admin have to file an accounting at the courthouse? Let's hope he is on good terms with the heirs......... Also, this is why most adminstrators/executors are required to post bond with the governing authorities. If he did not purchase a policy with a bonding company (secured bond), then yes, he may be responsible.
        Last edited by Burke; 06-17-2019, 03:26 PM.

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