death & efile

[TAXMAN]

Ok what will you do. Sent client 8879 for signature. TP signed and sent back(by mail). TP died the day b4 I got the form back. Can I still efile this return becaused he signed it b4 he died? TP is single. Refund was to b DD into his bank account which had his name and daughters name on it. Account remains still open.

[Jack from Ohio]

16 minutes ago, TAXMAN said:

Ok what will you do. Sent client 8879 for signature. TP signed and sent back(by mail). TP died the day b4 I got the form back. Can I still efile this return becaused he signed it b4 he died? TP is single. Refund was to b DD into his bank account which had his name and daughters name on it. Account remains still open.

Yes

[rfassett]

I agree with Jack, but with the voiced caution that anything can happen to that account between now and when the DD occurs. I might error on the side of caution and re-do the return with a check being issued. Because really that money belongs to the estate and not the daughter. And there should be a record of that. 

[mcb39]

3 hours ago, rfassett said:

I agree with Jack, but with the voiced caution that anything can happen to that account between now and when the DD occurs. I might error on the side of caution and re-do the return with a check being issued. Because really that money belongs to the estate and not the daughter. And there should be a record of that. 

It could be a payable on death account which now belongs to the daughter.

[Jack from Ohio]

3 hours ago, rfassett said:

I agree with Jack, but with the voiced caution that anything can happen to that account between now and when the DD occurs. I might error on the side of caution and re-do the return with a check being issued. Because really that money belongs to the estate and not the daughter. And there should be a record of that. 

Once the money is deposited, it becomes the responsibility of the executor to be sure it is properly handled.  That is not an IRS issue. 

[TAXMAN]

It was a joint account. Daughter is only heir. Rest of estate was POD to daughter. My concern was being able to efile that return. My thought was that he was alive when signed so should be ok to send on.

[rfassett]

38 minutes ago, Jack from Ohio said:

Once the money is deposited, it becomes the responsibility of the executor to be sure it is properly handled.  That is not an IRS issue. 

It is not making it an IRS issue; it is simply taking charge of an issue that may arise if not taken into consideration by the preparer.

[rfassett]

42 minutes ago, mcb39 said:

It could be a payable on death account which now belongs to the daughter.

I do not disagree with your point with the money that was there at time of death.  But money coming into the account thereafter would not necessarily carry the same characteristics.

 

[rfassett]

25 minutes ago, TAXMAN said:

It was a joint account. Daughter is only heir. Rest of estate was POD to daughter. My concern was being able to efile that return. My thought was that he was alive when signed so should be ok to send on.

Irrespective of number of heirs and to whom, you still have estate issues to be concerned about.  You may have no issue whatsoever in efiling the return, but there also may be issues that arise.

[mcb39]

I also agree with Jack.  I have never had issues with this type of e-file.   Remember, 2016 will be the filing of his final return.  Can you contact the daughter and make sure the account stays open until the tax refund is received?

[Roberts]

I would efile and I wouldn't change anything - continue with the direct deposit.

Since you know so much information, I'm assuming you know if they have proactively closed the account for some bizarre reason and a direct deposit would be voided. If it is, a check will eventually be issued anyway.

Let's not pretend to be attorney's - not our job or license ( unless that's who you are).

[michaelmars]

if you are worried about it, paper file and move on.