[WSBAPT] Income Tax Liability of Decedent's Spouse

[Diane J. Kiepe]

Inge

Once you have the information, you could consider if an offer and compromise from the estate is appropriate, if innocent spouse relief is appropriate or if other negotiating strategies may be appropriate

Keep us posted on what you find out about the filings by decedent if any - that will be key

Sent from my iPhone

On Jul 24, 2023, at 1:22 PM, Inge Fordham <inge at fordhamlegal.com> wrote:


Colleagues,

I have an estate where the decedent’s spouse failed to pay income taxes for a number of years.  There are 4+ years that were not filed.  For all years in question, decedent and spouse were married and lived in WA State.  My understanding is that for some of the years in question, the decedent may have filed separately and satisfied her own individual tax liability (I am working to verify).  This is an intestate estate without approx. $75k going to the surviving spouse and approx. $25k going to the decedent’s siblings.  The source of the separate property is inheritance from the decedent’s mother’s estate.  The siblings despise the surviving spouse (for good reason, frankly) and would be very angry to learn the decedent’s inheritance from their mother’s estate was going to satisfy the surviving spouse’s unpaid tax liability.  If the tax liabilities (including interest and penalties) exceed the surviving spouse’s share, must the administrator dip into the siblings’ share to pay the tax liabilities?  Is there any way to protect the siblings’ share?  I represent the administrator, who does not stand to gain anything from the estate.

Best regards,


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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