QUESTION
Can IRS ask for unpaid taxes from his estate?
Asked on Sep 01st, 2016 on Estate Planning - Illinois
More details to this question:
My father died on August 8. He was 85 years old. His financial advisor gave my brother, the executor of trust, a letter that said he did not file taxes for last 4 years and they wanted them by August 31. Brother just received letter on Friday August 26. Dad was living on SS and may have taken some money from his mutual funds. The amount is not clear yet but he was not wealthy. The amounts of withdrawal were under (probably well under) $30,000.
1 ANSWER
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Just like any other creditor, the IRS can require the payment of outstanding taxes from the estate and trust of your father. The IRS has creditor collection rights not usually available to other creditors. If distributions from the estate are made while creditor claims are unpaid the creditor can reach the distributions in the hands of the legatees.
Answered on Sep 27th, 2016 at 11:40 AM