Wife died soon after NC says 2020 tax return not filed which it was

[TPSigns]

This is my second tax season on my own since leaving CPA firm. I was hired by this elderly couple in their late 70s to catch them up on their taxes. They were behind due to wife having stroke in 2019 and then husband having stroke in 2022 and with COVID going on same time. Fast forward, I delivered their 2020 returns with envelopes and certified receipt with return receipt ready for mailing. They both signed and dated the returns as well as I did. They mailed originals on March 15th 2024. I e-filed their 2023 extensions few days after that. They have already got back the return receipts for the 2020 mailed but recently received a Notice to File a Return letter dated 4-11-24 from NC Dept of Rev. for 2020 return which was mailed to their new address (no way they would've had that new address without getting 2020 return that has new address). This letter said based on income information received from IRS listed below, you may have a filing requirement for tax year indicated above (2020). If you believe you have filed, send a copy by 5-11-24. If not, they will send a notice of tax assessment.

Problem is the wife has since passed away and other than the originals mailed, I only had copy of the return signed by both of them and mine with watermark (Client copy). I don't know if a clean copy is required and if so, how can it be filing as surviving spouse if she was still alive at the time 2020 return was filed?

The son is going to call back at end of this week to see if NC has processed it yet or not. If not, we would need to mail a copy of the filed return to NCDOR.

Any thoughts or suggestions?

[Uncle Sam]

Why weren't the 2020 tax returns e-filed?

[Anarchrist]

Why would you watermark your copy?

They're asking for a copy, send them a copy. Put "COPY" on it, put her date of death on it, staple a copy of the letter from NC to the front of it.

[TPSigns]

Uncle Sam, e-filing closed for 2020. They only allow past 3 years including the current. 2023, 2022, 2021. Originals are mailed or efiled without watermark. Client's copy is with watermark so client doesn't mail when originals are already mailed or e-filed.

Thanks. I will just write on top of form her DOD. I also planned to staple copy of the NC's letter as well as copy the USPS return receipts showing NC signed for it.