[WSBAPT] Administrator duty to search for indications of pre-death unfiled tax returns?

[Tom Stuen]

Eric:  I use a form 5495 request for release.  And obtain a transcript if it
appears that tax returns were not filed.  I think the PR is responsible for
taxes to the extent of funds distributed to beneficiaries.  I once
represented an estate where the deceased received a deficiency notice 9
years after he had failed to file.

                Tom Stuen

 

From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Thursday, December 11, 2014 3:25 PM
To: WSBA Probate & Trust listserve (wsbapt at lists.wsbarppt.com)
Subject: [WSBAPT] Administrator duty to search for indications of pre-death
unfiled tax returns?

 

How far does a PR's duty go to determine if a decedent failed to file income
tax returns? I have typically made sure that the decedent's final 1040 is
done, but unless something obvious crops up in the review of decedent's
papers, I don't do a huge search or explicitly query the IRS for records to
ensure they've been filed in all prior years.

 

I ask because I am having second thoughts about IRS Form 56, Notice of
Fiduciary Relationship. The instructions seem to require filing one for PR
as fiduciary for the estate (that is, estate tax and post-death income), and
one for PR as fiduciary for the decedent (that is, pre-death income). In
Section B entitled "nature of liability and tax notices," it essentially
asks the PR to say, "yeah, I'm liable for all income tax returns of the
decedent." Seems a bit much to me.

 

Am I overthinking?

 

Sincerely,

 

Eric

 

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1320 University St

Seattle WA  98101-2837

phone 206-625-0092

fax 206-625-9040

 

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