Filing late income tax returns for a deceased father HELP PLEASE!!!?

Question

My father recieved a letter from the IRS stating that he did not file taxes for 2006. Actually I have the letter because he passed away in October of 2006. I did not file after getting advise from some people, however obviously I needed to. Anyways, he was on comp. and ssi and drawing of his retirement. I was told comp. doesn't get claimed , but I don't know what to do about the rest of it. Does anyone have any idea who I can call to figure this mess out. Lawyers or the name of people that handle this kind of thing or any one else you can recommend. I'm in a hurry please let me know (asap) and thank you for your advise in advance.

Answer 1

Get a copy of 2005 income tax return of your father,he might kept it in his home. If not ,you may ask a copy from the taxation office. From this old copy at least you have some thing to work on. If you are good on tax and report it by yourself you can do it line by line for 2006 income tax return.

Go to online to download its 2006 income return. Or pay a tax report firm like H & Block to do it for you. It is cheaper than a accountant.

Answer 2

IRS would require a final return for you father if he had income.  Generally the person overseeing his estate must file this return.  It is a final return with the words "deceased 10/xx/06" written accross the top.

The pension is taxable and if income is high enough SS may also be taxable. If you do not have the original documents (1099R and SS statement)  you can contact IRS for the income information

I recommend you find an  Enrolled agent (a person licensed by the IRS to prepare and represent taxpayer) to help you. You can go to www.naea.org and find a preparer close to you.  We would be glad to help you, however I am in Vancouver Washington.  You can contatc me direct at [e-mail].

Good luck...this should be fairly simple to take care of.

Answer 3

This is a common problem.  Go to a commercial tax preparer who is open all year.  Bring all this correspondence, and the preparer will take care of it.   Scout around for a tax preparation place that looks like they have the expertise to handle this.  Most of the commercial places have offices open all year.  

It should not be real expensive based on your information.

Answer 4

You need to call a couple CPA's in your area..not a tax preperation place but a Certified Public Accountant Firm..now there rate will depend on the amount of time spent on the return and all it consists of. Call one and when you get a good friendly feel of one ask them for an appt to come in and get everything taken care of. They will tell you what you need to bring and its more than likely going to be all his taxes for 2005 and everything he has recv'd for 2006 including all IRS letters and SS papers W/C papers everything you have for him in 05 & 06. Do you have power of attorney to sign things for him or anything..the accountant will tell you what all you need to do to get it all done and behind you. It might cost a fee of course but it has to be done.

Hope this helps..good luck!

Answer 5

Two sources of help:

1.  An Enrolled Agent in practice in your area.  This is a tax professional and can do just as well (or better) than a CPA but usually charges somewhat less.

2.  AARP Tax-Aide.  This is a national group of volunteers who will help you for free.  While their sites usually close on April 15, you may be able to locate a volunteer in your area who will be happy to help.  Go to AARP.org and search for them or ask at a library or senior center in your area.

Answer 6

Yes, he (um, you, the personal representative of the estate) needs to file a 2006 tax return.  My advice is to find his 2005 return (either in his personal papers, or from the IRS).  If you understand everything on it, you can file his 2006 tax return with forms downloaded from the IRS web site.  

You also need his 2006 1099s, which you may be able to get from the IRS or the SSA.

I suggest you call the IRS (probably at the number on the demand letter) for advice as to how to request the information from them; normally, form 4506 and/or form 4506-T would work to obtain a copy of the tax return, but the instructions specifically state to see section 6103(e) of the tax code and regulations "... if the taxpayer has died..."

If don't understand his 2005 tax forms, you might go to HIS tax preparer, or to any year-round tax preparation service.  It seems unlikely that that there's really anything complicated about his return.  

If his taxable income for 2006 (retirement, investments, but disregarding Social Security) is less than $8450 ($9700 if he was born on or before January 1, 1942), it's likely that no tax return was technically due, but it may be a good idea to file one, anyway.

Answer 7

Usually, the estate is supposed to file a tax return, and it must be filed within a year from the death of the person.  Consult an estate attorney pronto.

Answer 8

My grandfather passed in December of 2006 he collected Social Security.. I did NOT have to file..

Talk to whom ever he used to prepare his taxes when he was alive

Answer 9

SSI and workers comp aren't taxable or reportable, but retirement income is, so that's what you'll need to show.

Any CPA who does taxes should be able to help you.  You don't need a lawyer.

Good luck.