Tax Prep by Deb Posted April 8, 2014 Report Share Posted April 8, 2014 I have a client whose husband died six years ago. In 2013 she received in his name and socialsecurity several loans that were cancelled amounting to $15,111. There was never a trust return filed because other than the house they owned together he had no other assets, so no need for anything but a final joint return for the year of death.Now six years later the 1099-C's show up. How do I handle this?Any help would be greatly appreciated!Thanks in advance! Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 8, 2014 Report Share Posted April 8, 2014 Well, since it's 2013 income, she's not able to file a joint return with it. Why not file a 1040 for him as single, deceased, and report the income as non-taxable due to insolvency? Or just ignore it, since there is no way the IRS is going to be able to find him. Any mail received from IRS to him should be returned to the PO unopened, marked "Deceased". 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 8, 2014 Report Share Posted April 8, 2014 He can't file a 2013 return. He was dead the full year! Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 8, 2014 Report Share Posted April 8, 2014 File form 1040 and 982 as insolvent. Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 8, 2014 Report Share Posted April 8, 2014 Since there is funds to pay for the debt, (the house) you might have difficulties using 982. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 8, 2014 Report Share Posted April 8, 2014 Since there is funds to pay for the debt, (the house) you might have difficulties using 982. NOPE. He died 6 yrs ago, at which time he did not owe this, and his share of the house was inherited by spouse. So in 2013, he has the income, but no assets. Still, I favor my second option, file nothing. 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 8, 2014 Report Share Posted April 8, 2014 FILE NOTHING ITS A DEAD ISSUE 1 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 8, 2014 Report Share Posted April 8, 2014 Since the 1099-C does not have her SS# on it, do NOTHING. Let the IRS collect it from him if they choose. She is not liable. Quote Link to comment Share on other sites More sharing options...
MAMalody Posted April 9, 2014 Report Share Posted April 9, 2014 I go with the do nothing. Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 9, 2014 Report Share Posted April 9, 2014 If there is ever a query, send the IRS the decedent's cemetery's address. Include the plot number... 2 Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted April 10, 2014 Author Report Share Posted April 10, 2014 Thanks everyone! I'm going with your advice and my first instinct. We will address this issue when it becomes an issue. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 10, 2014 Report Share Posted April 10, 2014 If there is ever a query, send the IRS the decedent's cemetery's address. Include the plot number... That would be too funny to see an IRS agent try to visit the address. Make it more interest and use "Lot Nbr" instead of plot number. This is almost as insane as a debt collector trying to collect a debt from someone who is incarcerated. No kidding, unfortunately we have a family member who has done some time that once lived with us. Yep, the debt collector who called me asked for the jail address after I explained where the person was. Just because I am the inquisitive type, I asked him what methods he was going to use to collect the debt and asked him to humor me; his response was you never know unless you try. 2 Quote Link to comment Share on other sites More sharing options...
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