Taxes for deceased parent - where to begin?
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Anonymous
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My sibling and I are executors of our mom’s estate. I’m not sure the last year she filed taxes. Definite didn’t file a 2017 return due to illness and possibly filed an extension for 2016. She also was the sole owner/employee of a 1-person company that also needs to file taxes. I’m guessing little to no money is owed to the IRS because they are not harrassing her/us in any way. However if money is owed, not trying to get out of it. Just looking for the simplest way forward. Seems so overwhelming.
Where do I begin? She did not have an accountant as she was one. |
Anonymous
| Hire an accountant. |
Anonymous
| Yes, I'd hire an accountant, and if you're lucky she'll have good records. I would not assume no money is owed just because the IRS isn't knocking--it takes them several years to catch up on things like that. |
Anonymous
How do I find them? It’s not like I’m going to hire Ernst or PWC. And what information do I give them other than her bank statements? The house is a mess and the piles of papers are meaningless to me. |
Anonymous
| Get a tax transcript from the IRS for the last couple of years. If tax returns are not filed, the IRS "does" it and it should be reflected in the transcripts. You will need to file this years taxes. If the estate earns substantial income, you will have to file for an EIN for the estate and file a return for the estate as well. |
Anonymous
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i would start with posting on a local listserve that you are looking for a tax accountant with experience with small businesses.
Possibly your mom worked with a lawyer who could recommend someone? You want someone who is licensed in the state that your mom lived in and is close by so it is easy to go through papers together. Depending on how your mom's company was set up, it might be simple to address - but a tax accountant will be best able to advise. |
Anonymous
| Also tap your mom's own network, given that she was an accountant. She may have a colleague who would be willing to work with you at a reduced rate. |
Anonymous
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I'm going through this, as well. I have ten years of back taxes to file. Even if you can figure out the old personal and business returns, estate taxes are complicated. I'm an attorney, and I decided there was no way I could do it myself. My probate attorney recommended an accountant.
As others have mentioned, you'll need to get a transcript from the IRS, and it will show what she's paid, and what returns have been filed. If you hire an accountant, they can do this for you. I hate to tell you, but you're going to need to sort through all of those papers (trust me, I feel your pain!). You'll need to give the numbers to the accountant -- not only income, but any business expenses, etc. |
Anonymous
| One big question, is there an estate of any value or any real state? Walking away from it all is another option. |