1041 and Back taxes

[quicksam]

I have a client who is the personal representative over her brother's estate. He passed away in May of 2006.

While digging through all of his information we determined he had not filed a return since 1999. I have compiled the information and he owes quiet a
large tax bill for several of the years. In 2001 he owes over $6000.

My client wants to pay the amounts owed out of the estate. Has anyone had a situation like this before. We want to pay the tax owed but try and have the penalties and interest removed so she will not have to pay that.

Any response will be appreciated.

Lester

[travis bickle]

good luck with your client

I have a client who is the personal representative over her brother's estate. He passed away in May of 2006.

While digging through all of his information we determined he had not filed a return since 1999. I have compiled the information and he owes quiet a
large tax bill for several of the years. In 2001 he owes over $6000.

My client wants to pay the amounts owed out of the estate. Has anyone had a situation like this before. We want to pay the tax owed but try and have the penalties and interest removed so she will not have to pay that.

Any response will be appreciated.

Lester

first, the irs is not supposed to be allowed to abate interest (please do not ask me to cite chapter and verse on this, i know i have seen it often enough but cannot recall where).

having said that whenever i have had a client in a situation such as yours, i have always asked to have "penalties and interest be abated" (figured it can't hurt to ask). sometimes p&i were both abated, sometimes only penalties.

however, in each of my situations, i have cited "reasonable cause" to the irs in my request to abate p&i (and then laid out the specifics surrounding why a return was not filed).

now, does your client have "reasonable cause"? too infirm to file? could not manage personal financial affairs? or, ????

i ask this because it would seem rare to me for the irs to abate either p&i without some cause.

take care,