[WSBAPT] Insolvent probate with new tax bill

[John J. Sullivan]

There is another federal statute that overrides the private code and places the IRS in a higher priority than other creditors except for last illness and burial.  But it does not override the top priority position of reasonable expenses of administration. 

In similar cases I have closed with a final report and order, filed an inventory and notified the IRS in advance. 

John Sullivan. 

Sent from my iPhone

> On Oct 7, 2016, at 6:29 AM, John White <white at livengoodlaw.com> wrote:
> 
> The P.R needs to be aware of 31 USC 3713, which imposes personal liability if others get paid ahead of the IRS. I am away from my office‎.
> 
> Contact the IRS rep that the CPA has been dealing with and get the contact info for the IRS personnel who deal with insolvent estates. You should be able to work something out.
> 
> Sent from my BlackBerry 10 smartphone.
> From: Kristina devore
> Sent: Thursday, October 6, 2016 11:02 PM
> To: WSBA Probate & Trust Listserv
> Reply To: WSBA Probate & Trust Listserv
> Subject: [WSBAPT] Insolvent probate with new tax bill
> 
>  
> I have an insolvent probate where the IRS has audited the tax return for the year prior to the decedent’s death and determined that he did not qualify for a tax credit that he claimed and therefore had underpaid for that year.  I am just learning of the audit and its outcome (new tax bill) as the PR and the CPA did not let me know this was going on until now. 
>  
> Does anyone have advice on how I need to proceed?  There is not enough money in the estate to cover attorney fees so we will not be paying any creditors.
>  
> Thanks in advance for any advice.
> Kristina
>  
>  
>  
>  
> Kristina S. DeVore | Attorney & Counselor at Law
> KRISTINA DEVORE LAW FIRM, pllc | 201 NE Park Plaza Dr., Ste., 290 | Vancouver, WA  98684
> Phone: (360) 695-0535 | Fax (360) 737-4154 | Kristina at devore-law.com
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