Cleaning Up Deceased Taxpayers' Tax Problems

Author: Klaralee R. Charlton

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Taxpayers are not always compliant with their tax obligations during life. At death, tax issues don’t just disappear. Instead, the executor administering the deceased taxpayer’s estate must resolve the issues or face possible personal liability for failing to do so before distributing assets to beneficiaries. In this course, we will understand how to tackle common outstanding tax issues for deceased taxpayers including talking to the IRS on behalf of a deceased person, preparing unfiled returns, obtaining outstanding refunds, paying tax liabilities, filing offers in compromise, and avoiding personal liability for the executor.

Publication Date: May 2024

Topics Covered

• Brief Outline of Administrator Responsibilities
• Filing the Final Return
• Unfiled Personal Income Tax Returns
• Outstanding Income Tax Liability
• Insolvent Estates
• Liens Against Estate Assets
• Offers in Compromise
• Avoiding Personal Liability

Learning Objectives

• Describe the tax problems faced by executors when a deceased taxpayer has unfiled returns and outstanding tax liability
• Explain how to contact the IRS or claim a refund for a deceased taxpayer
• Identify the best method for addressing an insolvent estate when the decedent has outstanding tax liability
• Identify options for limiting liability for the executor who is administering the deceased taxpayer's estate
• Identify the form that can be filed to request a penalty abatement for failure to timely withdraw RMD

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None