Deceased father...unfiled tax returns

[softy515]

What is the name of your state (only U.S. law)? PA

My father passed away a few months ago.

He has not filed taxes for many years and the IRS was knocking on his door early this year or the end of last. (All this has come to light since his passing)

We are very aware that we need to file all this to settle the estate. And of course pay any taxes due.

How far back can the IRS make us file? What if we can't find anything from years past? Should I call the IRS or will that just bring them down on us hard.... meaning they are going to demand this is done NOW? Of course I am trying to get it all together but it isn't going to happen over night.

Any suggestions would be highly appriciated!

 

[tranquility]

See a tax professional. They will be able to look through the facts and determine the best course. In theory, the IRS can demand all non-filed returns. In reality, you might be able to get by will less. You might want to get the transcripts for all the years being demanded as well.

Doing it yourself will take way more time than you want and the result will be less than what you want. See the guy who does this all year long.

 

[davidmcbeth3]

There is no statue of limitations for non-filed taxes.

I would recommend you get all the tax returns he filed from the IRS before you begin re-doing (or doing) his taxes. Capital gains/losses etc can roll over from TY to TY so you'll need a complete pic of his filings.

 

[softy515]

I can assure you I won't be doing these taxes. However, even getting to a manageable point is going to take time.

I contacted the accountant I see he has used and he seemed willing to give direction and 'check' with someone to see what years we should do first and we were going to have him do the returns. He doesn't seem eager to be the one doing them though. ???? He actually suggested I NOT call the IRS and bring my Dad's name to their attention until he spoke with 'his guy' at the local IRS office. Then I never heard back from him.

 

[tranquility]

Go to someone else. No professional should rely on a guy they know at the place.

 

[LdiJ]

I can assure you I won't be doing these taxes. However, even getting to a manageable point is going to take time.

I contacted the accountant I see he has used and he seemed willing to give direction and 'check' with someone to see what years we should do first and we were going to have him do the returns. He doesn't seem eager to be the one doing them though. ???? He actually suggested I NOT call the IRS and bring my Dad's name to their attention until he spoke with 'his guy' at the local IRS office. Then I never heard back from him.

I have been through this process with many clients this year. Its not a difficult as it may seem.

The executor of the estate should call the IRS, and should have documentation available to fax to them that shows that they are the executor. He/she should explain that they are concerned that the taxpayer had not filed tax returns, and that they want to verify what returns need to be filed. Explain that the taxpayer has passed away. Find out what years are needed. Then, ask the IRS to fax over wage and income transcripts (make sure you emphasize wage and income) for those years.

You would then use the transcripts to determine what other information you might need and where you might need to get it. A tax professional with experience handling prior year returns can help you determine what you need and where you need to get it. Its possible that the transcripts will be sufficient by themselves to handle the federal returns, but you will likely need additional info to handle the state returns.

Call the IRS at 1-800-829-1040. If you choose menu option number 2 (press 2) on the second menu option 1 (press 1) you will get to a live person. Be prepared to be on hold for a while.