Deceased client

Technical topics regarding tax preparation.
#1
taxcpa  
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Got word last night that a client has passed away. 30 year tax prep engagement.

Apparently, she didn't share her intentions with family members, who are now reaching out to me for advice/information. One immediate issue is they don't have her SSN for the death certificate. They do have access to her home, having forced entry with Law Enforcement to do a welfare check.

At this point, I think the extent of what I can offer is sympathy for their loss and advise them to engage counsel to assist them in determining how to proceed. Once there is a personal representative of the estate appointed, I can provide informaiton from her file as the PR is effectively the individual.

Have I got this right? I don't know if there are possible issues, but there is an estate, it does have value, and people do crazy things when money is involved.
 

#2
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30 year tax prep engagement.

Wow, that must have been a huge tax return!! I can’t imagine what the penalties and interest will be.
 

#3
Nilodop  
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One immediate issue is they don't have her SSN for the death certificate.. Just today I read online where a family brought in the dead body to prove the death. Really.
 

#4
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Always tricky when a client dies and the mysterious family members call. I think you are doing the rig(t thing and safeguarding her information. Until yo have a death certificate and executor you are limited.
 

#5
mscash  
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A death like that would be reported to the coroner. I would be comfortable making disclosures to him. Unless there is massive fraud, you can limit the preparation to the last six years according to IRS policy.
 

#6
taxcpa  
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Apparently I was not clear. Client has been with me for 30+ years, all returns timely filed. No issues there.

I like the idea of disclosure to the coroner, if necessary. I need to check with the family now that they have had a couple days to figure things out.
 

#7
Andrew  
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You haven't been authorized to disclose anything so I wouldn't do that unless I got a written legal notice to request the ssn. There have to be other ways for a coroner to get an ssn other than from a tax preparer. She's not the only one passing away without family members knowing her ssn. And some people don't even have family members. I wonder if the ssn is an absolute requirement on a death certificate.
 

#8
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Someone needs the SSN to notify SSA. I'm wondering how they knew you were her preparer. If they have access to her home, perhaps they can find previous returns with the SSN. I would not disclose anything till someone proves he/she is the responsible fiduciary. Otherwise, you may insert yourself in the middle of a family drama.
 

#9
deniz  
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It is in everyone's best interest that you immediately refer them to a competent estate attorney and have them handle it.

You are not authorized to practice probate law, only tax law.
 

#10
taxcpa  
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Relative of the client was sent to me by a mutual friend, who knew I was the tax preparer.

Relative has found the 2018 return package, and SSN has been furnished to the funeral home by them. I have referred the relative to a competent attorney. Once a PR is appointed, I will be happy to prepare the final 1040 and 1041. Anything else will be referred out as well.

I am sympathetic to the situation, but not to the point of involving my self in a problem estate.
 

#11
deniz  
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It sounds like you are taking the right steps in this difficult situation.
 


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