Haven’t Filed Taxes for a Deceased Loved One? What You Need to Know

When a parent, spouse or other close family member passes it can be a difficult and stressful time. Navigating the complexities of estate taxes and inheritance tax can be overwhelming and getting a handle may seem like a daunting task.

Here's how our WATAX can assist you in filing taxes for your deceased family member with ease:

1. Determine Their Tax History: Grant us IRS Power of Attorney, and we'll investigate their tax records to ascertain when they last filed, uncover any unfiled returns, and determine any past liabilities.
2. Smooth Tax Filing: Rely on our guidance to file three to six years of returns based on their financial situation, ensuring proper closure to avoid potential scrutiny.
3. Determine a strategy to pay the taxes due from the deceased person to avoid personal assessment. Unpaid taxes can pass thru to their heirs. Best to pay off the taxes from the person's remaining assets if you can and ask for a penalty waiver.
4. Estate Tax Considerations: Most estates aren't taxed on the assets and liabilities left to heirs. However, if an estate remains open for an extended period without distribution, capital gains and income from the estate can become taxable. In such cases, we'll obtain an EIN for the estate and prepare and file Estate tax returns (Form 1041) with tax payments.

Count on Washington Tax Services, with over 30 years of experience in handling similar issues, to provide caring and professional assistance.