Taxes not Filed for 6 years

[Can'tSeemToWin]

What is the name of your state? MA, AR, and currently NC.

My mom has not filed her taxes in 6 years, I have been after her year after year to get this taken care of and she continually puts it off. I've even gone so much as to tell her to give me all of her receipts and anything else that she has and that I will do them. She always tells me that she will go through her boxes and find them. In the last 6 years my mom has:

• Sold a primary home w/ a $100,000.00 profit.
• Bought a house for cash in a different state with the profit from the 1st home.
• Moved to NC, and sold the house in AR and took a loss.
• I believe that she might have also cashed in some stocks during this time as well.

Mom also receives alimony from my dad on a biweekly basis.

My mom has now found out that she is sick and who knows how long or what will happen. Mom also does not have a will. My question is, where in the world do i begin to get her to figure this out and also, if something should happen to her before she figures it out and she has made a will with me as the executor, am I liable for all of this stuff, her debt and taxes?

[JETX]

Originally Posted by Can'tSeemToWin

where in the world do i begin to get her to figure this out

Have her go to a GOOD local CPA.

and also, if something should happen to her before she figures it out and she has made a will with me as the executor, am I liable for all of this stuff, her debt and taxes?

Nope. But her estate will be... and the IRS will get theirs LONG before you get anything.

[Can'tSeemToWin]

Originally Posted by JETX

Have her go to a GOOD local CPA.


Nope. But her estate will be... and the IRS will get theirs LONG before you get anything.

I kind of figured that the IRS would take theirs, would this include the entire insurance policy that she has? We would need some of that to at least pay for her funeral. How would that work?

[LdiJ]

[quote=Can'tSeemToWin]What is the name of your state? MA, AR, and currently NC.

My mom has not filed her taxes in 6 years, I have been after her year after year to get this taken care of and she continually puts it off. I've even gone so much as to tell her to give me all of her receipts and anything else that she has and that I will do them. She always tells me that she will go through her boxes and find them. In the last 6 years my mom has:

Sold a primary home w/ a $100,000.00 profit.

Not a problem, she had a 250k exclusion

[quote]Bought a house for cash in a different state with the profit from the 1st home.{/QUOTE]

Also not a problem

Moved to NC, and sold the house in AR and took a loss.

Also not a problem

I believe that she might have also cashed in some stocks during this time as well.

Could be a problem, it depends on whether or not she had any actual "gain" from the sales...she could have had losses just as easily as gains.

Mom also receives alimony from my dad on a biweekly basis.

THAT is definitely a problem. Alimony is tax deductible to the payer, and taxable to the recipient. If your dad has been deducting the alimony then your mother definitely has a problem.

My mom has now found out that she is sick and who knows how long or what will happen. Mom also does not have a will. My question is, where in the world do i begin to get her to figure this out and also, if something should happen to her before she figures it out and she has made a will with me as the executor, am I liable for all of this stuff, her debt and taxes?

You are not liable, even as executor for your mom's estate. However, her estate would be liable....if there is any estate.

[abezon]

It sounds like mom might be dealing (badly) with depression. Could you get her to give you a financial power of attorney for purposes of gathering information & filing tax returns? You can go to [url]www.irs.gov[/url] & download form 2848. Fill it out & have her sign it. You can use the 2848 to get the IRS to inform you of whatever income they have on file for her. (They have copies of all 1099 forms.) You might need a more general POA to get her brokerage to give you basis info. You'll still have to have her sign the returns, but you can at least get them prepared.

You can't sign the returns for her.

Don't forget to file the various state returns.


As executor, you are responsible for paying her debts from the estate, which will necessarily include filing tax returns. You might as well get them filed now.

If she has a life insurance policy that names you as the beneficiary, that money is yours & the IRS can't go after it to pay her debts. If she named her estate the beneficiary, the IRS has dibs on the money.

[Can'tSeemToWin]

Originally Posted by abezon

It sounds like mom might be dealing (badly) with depression. Could you get her to give you a financial power of attorney for purposes of gathering information & filing tax returns? You can go to [url]www.irs.gov[/url] & download form 2848. Fill it out & have her sign it. You can use the 2848 to get the IRS to inform you of whatever income they have on file for her. (They have copies of all 1099 forms.) You might need a more general POA to get her brokerage to give you basis info. You'll still have to have her sign the returns, but you can at least get them prepared.

You can't sign the returns for her.

Don't forget to file the various state returns.


As executor, you are responsible for paying her debts from the estate, which will necessarily include filing tax returns. You might as well get them filed now.

If she has a life insurance policy that names you as the beneficiary, that money is yours & the IRS can't go after it to pay her debts. If she named her estate the beneficiary, the IRS has dibs on the money.

Thank you, what happens if her estate doesn't have any money?

[LdiJ]

Originally Posted by Can'tSeemToWin

Thank you, what happens if her estate doesn't have any money?

Then the IRS is SOL.

[JETX]

Originally Posted by LdiJ

Then the IRS is SOL.

Sorry, but NOT true. 'Money' has nothing to do with this. Now if the estate has no ASSETS or value.... then the IRS MIGHT be SOL.....

[LdiJ]

Originally Posted by JETX

Sorry, but NOT true. 'Money' has nothing to do with this. Now if the estate has no ASSETS or value.... then the IRS MIGHT be SOL.....

Ok..that's a valid point on the assets, but its sematics.

If the estate has no money or assets that can be converted into money...then its not that the IRS "might" be SOL, its that the IRS would BE SOL. There is no "might" involved here. The IRS cannot lay claim to any assets or money that does not belong to the estate.

Of course there might be some argument regarding what does or doesn't belong to the estate, but ultimately unless an asset belongs to the estate its not available to the IRS.

[JETX]

Originally Posted by LdiJ

Ok..that's a valid point on the assets, but its sematics.

Awww... but the law is FULL of semantics... and their differences!!

[Can'tSeemToWin]

Thank you all so much, I really appreciate you taking the time to reply to my post. It's nice to know that there is someone out there willing to help with your questions. Have a nice day!