[WSBAPT] Decedent's Taxes & IRS Tax Liens

[Kristina devore]

I have a similar issue with the IRS.  IRS audited the Decedent’s taxes for the year prior to death and has determined that more taxes were due. The estate is insolvent and there is no money from the estate to even pay attorney fees.  The PR has been working with the accountant who filed those taxes but the accountant won’t take my calls.  There were some non probate assets.  I life insurance policy that went to an ex spouse and an IRA that went to Decedent’s two children both of which should not be available to satisfy creditors.

No creditors will be paid and, besides the tax issue, the estate is ready to be closed.  Will the IRS release their claim in a situation like this?

Thanks,
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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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of "John J. Sullivan" <sullaw at comcast.net>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Friday, May 12, 2017 at 10:19 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Decedent's Taxes & IRS Tax Liens

Paul:

Not a good idea. Be careful. For back income taxes IRS cuts in line ahead of general creditors and behind last illness/burial.

http://www.hodgsonruss.com/newsroom-publications-8881.html

John Sullivan

Sent from my iPad

On May 12, 2017, at 12:34 PM, Paul Neumiller <pneumiller at hotmail.com<mailto:pneumiller at hotmail.com>> wrote:
I have been assisting Girlfriend (GF) probate Decedent’s estate (long cash-depleted illness).  Will says everything goes to GF.  There is little to no money but a residence with some equity.  GF has successfully dealt with all creditors and has filed Decedent’s tax returns.  We were able ready to close probate but GF just received a Notice of Intent to Seize Property or Rights to Property from the IRS for about $9k  for the past three years for Decedent’s taxes (news to me).  While I plan to bring in an accountant to advise the GF vis-à-vis the IRS, I am curious, what horrible things, if any, would happen to GF if we used a PR Deed and transferred the residence to GF before the IRS slapped a tax lien against the house?  Is this a fraudulent transfer?  If not, can the IRS force her to sell the house in order to pay Decedent’s back taxes.  We have been able to negotiate with all other creditors to accept pennies on the dollar.

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