Deceased taxpayer

[cpabsd]

Taxpayer died during 2008. On the final Form 1040, there is a balance due of $750. The taxpayer's return is being filed as single. There is no money in the estate. Who, if anyone, is responsible to pay this tax?

Thanks!

[Lion EA]

Beneficiaries of the estate, maybe? Is there a lawyer involved? If so, let him sort it out. Did anyone inherit assets, IRAs, anything of value, house, car,...?

[cpabsd]

The taxpayer was in his 80's. There were no assets in his name. The daughter received some money that was in a savings account. That money was used to pay burial expenses and some medical expenses. There is no money left. What will the IRS do to try to collect this money?

[Catherine]

The taxpayer was in his 80's. There were no assets in his name. The daughter received some money that was in a savings account. That money was used to pay burial expenses and some medical expenses. There is no money left. What will the IRS do to try to collect this money?

In another forum with a similar question, the advice was to send the IRS the decedent's current address -- cemetery and plot number. The implication is that in such a case where there is no money and no one inherited anything, the IRS is SOL (the other meaning; not statute of limitations).

YMMV

[Booger]

In another forum with a similar question, the advice was to send the IRS the decedent's current address -- cemetery and plot number. The implication is that in such a case where there is no money and no one inherited anything, the IRS is SOL (the other meaning; not statute of limitations).

YMMV

Catherine, what does YMMV mean?

Curious Booger

[JohnH]

Your Mileage May Vary

[michaelmars]

can we stop this tread-its a dead issue!!

[sorry very tired today!]

[Catherine]

Catherine, what does YMMV mean?

Curious Booger

JohnH got there first -- but figured I'd say "Hi Booger!"

Catherine

[Booger]

Thanks, JohnH. Didn't know that abbreviation.

Booger

PS Hello Catherine!!

[jainen]

>>Who, if anyone, is responsible to pay this tax? <<

The executor, administrator, friend, or whoever is handling the decedent's property. One of the principal duties is to pay the taxes first, so if he or she transfers ANY thing of value to heirs the executor would be PERSONALLY liable for the unpaid taxes. The heirs are also PERSONALLY responsible for the taxes to the extent of any value they inherited.

For only $750, I wouldn't be surprised if the executor completely forgot to mail the return. Probably assumed it was already efiled by the preparer.

[Catherine]

>>Who, if anyone, is responsible to pay this tax? <<

The executor, administrator, friend, or whoever is handling the decedent's property. One of the principal duties is to pay the taxes first, so if he or she transfers ANY thing of value to heirs the executor would be PERSONALLY liable for the unpaid taxes. The heirs are also PERSONALLY responsible for the taxes to the extent of any value they inherited.

For only $750, I wouldn't be surprised if the executor completely forgot to mail the return. Probably assumed it was already efiled by the preparer.

In the details given, it sure didn't sound like there was -anything- of value inherited by anyone. Nor would the daughter have known about any tax liability until long after the medical and burial bills had been paid. If all that was left was food in the pantry, well-used clothing, some run-down furnishings, and family photos, she didn't inherit anything of "value". And she probably paid (will pay) cpabsd, our colleague, for preparation of that final return out of her own funds.

Based on the information as given, I cannot say that the daughter personally owes one penny of the $750.