MFS Client

Technical topics regarding tax preparation.
#1
Bell  
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435
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19-May-2014 3:35pm
I just prepared, but have not filed 4 years of returns for a client who's husband moved out and has not filed since 2014. I filed her MFS. Well, before she picked these up, the husband suddenly died, 52 years old. Now I am rethinking what I did as I was very careful to only give her a few deductions in order not too hurt him......in the chance that he would eventually file. As it turned out, she had small balance dues in the state, but zeroed out on the Fed. Now, I am thinking I should be more generous with the deductions. Enough to clear the state.

She is the executor of his will. They are not divorced or legally separated. She has to file 2019 for him as his executor. It would make sense to file that one MFJ and then get her QW for the next two years. (she has 2 kids)

But, what about 2018? He never filed it on purpose. Would she be required to file that year? He died yesterday. Way past all dead lines for 2018.

If she is filing MFS for the other years, is there any obligation on her part for filing 2015, 2016, 2017 and 2018? She doesn't have his W-2's.

Is there anything else I should be thinking about?

He has CC debt in his name.

He has Life insurance that she is beneficiary of.

Thanks for your thoughts and direction on this.
 

#2
sjrcpa  
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As the executor she has the responsibility to satisfy all liabilities of the estate, to the extent of available assets. This includes income tax liabilities of the decedent.
 

#3
taxcpa  
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As executor she is responsible for settling his estate, including paying all outstanding taxes and other liabilities. Short answer is yes, the returns will need to be filed.

She needs legal advice as to her responsibilities and how to avoid personal liability for the decadents debts.
 

#4
Bell  
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435
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19-May-2014 3:35pm
Then filing her MFS is probably the best thing to do for her. How do we get his W-2's for those years? He had an S-corp for a couple of those years, too. No accounting for it.
 

#5
Soups  
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I think publication 504 says she could be head of household. This would mean she would not have to itemize at all. I am not sure if she covers all the requirements but you may want to look into that.
 

#6
Bell  
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435
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19-May-2014 3:35pm
Nope. Did not pay over 50% cost of maintenance. She had very little income.
 

#7
sjrcpa  
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The executor can request W-2s, etc., from the IRS. She can request business bank records from the banks to reconstruct S Corp activity.
 

#8
taxcpa  
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716
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Does his estate have any assets? If not, then I would guess things get easier. If so, especially if she is the heir, then she really needs legal advice to make sure she hits all the marks correctly.
 


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