Elderly client's address to use

[Margaret CPA in OH]

Clients are quite elderly although the man is still very sharp.  In early 2014 he had a health incident which put him into a nursing home likely until he dies.  He is 93 now.  His wife has been in a home for several years with Alzheimer's. 

 

Son who lives out of state now has durable POA to sign everything.  For 2013 I used the client's family home address (it was thought early on he might return there), but that home has now been sold.

 

Client and wife live in separate nursing homes.  Which address to use on return for 2014?  They still file jointly.

[Jack from Ohio]

Use the address of the son with POA.  Don't overthink this.

[Margaret CPA in OH]

I have done this when all live in the same state but he lives out west, far away.  Not a problem? 

[jklcpa]

Margaret, as you probably know, a durable POA is for all matters but is not for tax matters. The IRS will not accept this as valid unless it contains all the required information that a standard 2848 contains. Your client and his son might want to consider perfecting this durable POA so that it is also valid for tax matters.  Pub 947 has the details.

 

Sorry I don't have the easy answer about the address. Are there any other trusted relatives nearby that the father and son could work with?

[Max W]

There should not be any problem with the feds, but unless the son lives in one of the non-tax states, the state could come looking for their share of the tax pie.  

The son might then have to get involved with proving the actual residency of the parents.

[michaelmars]

YOU CAn use any mailing address you want, many of our clients that snowbird use our office.  Not something I love but they have been doing it since before I was here.   I would use the POA address in this case.

[Margaret CPA in OH]

Judy, I do know the issue you have raised and have documented same to the son.  He has not yet acted on it and, at least for 2013, dad was competent enough to sign the returns.  I am uncertain for 2014 at this time and have already alerted son about the likelihood of getting conservancy for mother and maybe father, too, while he's at it.  I also stated that returns will be extended if he doesn't have proper documentation.

 

I just wasn't sure about the address to use on the return.  Seemed odd to me, that's all.

 

Thanks for input!

[Jack from Ohio]

YOU CAn use any mailing address you want, many of our clients that snowbird use our office.  Not something I love but they have been doing it since before I was here.   I would use the POA address in this case.

 

Use the address of the son with POA.  Don't overthink this.

Like I said.  The IRS does NOT care what mailing address is used.  Too much thought into this already.  It is ONLY the mailing address.

 

Has everyone forgotten the simplicity of this answer?  Michaelmars nailed it.

[mcb39]

Had clients for years: Husband was in hospital in WI until he passed; Wife was in Nursing home in Colorado, where son lived. Daughter with POA was in Florida. I always used the address of the daughter in Fla as she was my contact person until and beyond the death of the wife. Never had a single problem.

Originally, this husband and wife were my clients while they lived in WI; until tragedy struck. First him; then her. Fortunately, they had their affairs in order and son and daughter were in agreement also.

[Gail in Virginia]

Had clients for years: Husband was in hospital in WI until he passed; Wife was in Nursing home in Colorado, where son lived. Daughter with POA was in Florida. I always used the address of the daughter in Fla as she was my contact person until and beyond the death of the wife. Never had a single problem.

Originally, this husband and wife were my clients while they lived in WI; until tragedy struck. First him; then her. Fortunately, they had their affairs in order and son and daughter were in agreement also.

FL is one of the states with no income tax.  I agree that you can use any address without a problem as far as the IRS is concerned.  But if the son happened to live in Virginia, and a federal return was filed using his address for the parents, then unless their income is less than the filing requirement for Virginia, Virginia will be in touch looking for that state income tax return.  I suspect most other states that have an income tax will also.  That being said, I would use the son's address and just be prepared to document where the parents actually maintain their residence when asked by the state where the son lives.  I find that if I tell my clients to expect a letter they are not nearly as upset by it as they are when it comes out of the blue.

[Jack from Ohio]

FL is one of the states with no income tax.  I agree that you can use any address without a problem as far as the IRS is concerned.  But if the son happened to live in Virginia, and a federal return was filed using his address for the parents, then unless their income is less than the filing requirement for Virginia, Virginia will be in touch looking for that state income tax return.  I suspect most other states that have an income tax will also.  That being said, I would use the son's address and just be prepared to document where the parents actually maintain their residence when asked by the state where the son lives.  I find that if I tell my clients to expect a letter they are not nearly as upset by it as they are when it comes out of the blue.

If the parents reside in a state with a state tax, why wouldn't you file the state return to begin with?  Regardless of the address?  Too much overthinking on this one.

[mcb39]

My clients never owed any tax because their LT care expenses were always way more than enough to wipe out any tax liability. He had fallen and was paralyzed from the neck down. She had dementia. They were only in their 60s and enjoying retirement; when, Bingo: Everything ended for them. Live each day as though it were your last.

[Max W]

If the parents reside in a state with a state tax, why wouldn't you file the state return to begin with?  Regardless of the address?  Too much overthinking on this one.

When a state return is filed in the state of residence and the address is in another state, that state will pick it up from the IRS exchange of information.

The address state has no knowledge of the residence state filing and will make inquiry as to why the address state has not received a filed form.

 

I have had to deal with this several times and a copy of the residence state return with a short explanation suffices.  However, when the residence state is a non-tax state, the problem becomes more difficult and all sorts of documentation showing residence are needed. 

 

No overthinking here, Jack.  

[Jack from Ohio]

When a state return is filed in the state of residence and the address is in another state, that state will pick it up from the IRS exchange of information.

The address state has no knowledge of the residence state filing and will make inquiry as to why the address state has not received a filed form.

 

I have had to deal with this several times and a copy of the residence state return with a short explanation suffices.  However, when the residence state is a non-tax state, the problem becomes more difficult and all sorts of documentation showing residence are needed. 

 

No overthinking here, Jack.  

We deal with this all the time.  Send a non-resident form to the address on the Fed return.  Been doing this for many years.  YES, way overthinking.

[jklcpa]

We deal with this all the time.  Send a non-resident form to the address on the Fed return.  Been doing this for many years.  YES, way overthinking.

 

????  Creative, but not what any filer should be doing, and just because you've been doing it that way for many years does NOT make it correct, only that your creativity hasn't caused your clients in   requiring additional documentation.   You should NOT file a state return for a state that the taxpayer truly has no connection to other than a c/o mailing address.

[Jack from Ohio]

????  Creative, but not what any filer should be doing, and just because you've been doing it that way for many years does NOT make it correct, only that your creativity hasn't caused your clients in   requiring additional documentation.   You should NOT file a state return for a state that the taxpayer truly has no connection to other than a c/o mailing address.

We do it because the IRS shares information with the States.  The state tax departments are not smart enough to know the difference.  We choose to be proactive instead of reactive.  You will have the same issue if a client moves. 

 

WAY too much overthinking here!!!

[kcjenkins]

Well, I took a SLIGHTLY different tack, in that I used the son's address, but not as the t/p address but as 

 

c/o Xxxxx Yyyyyy

123 Easy St.

Anytown, State, xxxxxx

 

Never had a problem, they can see at once that it's "in care of" address.  

[Jack from Ohio]

Well, I took a SLIGHTLY different tack, in that I used the son's address, but not as the t/p address but as 

 

c/o Xxxxx Yyyyyy

123 Easy St.

Anytown, State, xxxxxx

 

Never had a problem, they can see at once that it's "in care of" address.  

No one will even look.  If there is a state involved, they will not pay attention anyway.  This has been my experience over the years.

[joanmcq]

My sister in Maryland had this issue when all my dad's mail (he lived in PA) went to her since she managed his financial affairs. His TIAa-CREF pension decided to start withholding MD taxes instead of PA taxes because of this. We did, however, file the tax returns with dad's address so we were able to get it straightened out with MD by filing the NR return to get back the withholding.

I would only file the NR state return if the POA's state came looking for it.