Dead Spouse

[Donald Hughes]

TP filed a 2020 Tax return for her deceased spouse, after he was dead. It was filed as MFS as the TP had previously filed her return. She stated she was required to file due to the Trust.

There is a balance due IRS. She wants to know if there is a way she can get off the hook for paying the balance due since he has since passed. He was alive in 2020, and they were married and living together in 2020.

[BulldogTom]

I think she was off the hook until she filed the return for him.   

If I understand the situation, your client filed her own MFS for 2020.   He did not.   He died sometime after that.   "Someone" told her that the trust required her to file the tax return for him for some unknown reason and she did so as the surviving spouse (not the trustee or executor)?  Now she does not want to pay the taxes from the return she signed...and I think that signature on the return makes her the responsible party to get the funds from the spouse's estate to pay the bill to the IRS.

Correct my understanding if I got the facts wrong please.

Tom
Longview, TX

[Lee B]

Unless the deceased taxpayer had no assets at the time of death, isn't whoever was the fiduciary for his estate responsible for paying any taxes due

before any distributions are made to the beneficiaries?

[schirallicpa]

Not sure why she felt obligated to file for him.  I have a situation similar to this but the surviving spouse has not filed for him yet as I questioned why she should.  Afterall - MFS....Hate to sound like a jerk.  But it ain't her problem.

[jklcpa]

20 minutes ago, schirallicpa said:

Not sure why she felt obligated to file for him.  I have a situation similar to this but the surviving spouse has not filed for him yet as I questioned why she should.  Afterall - MFS....Hate to sound like a jerk.  But it ain't her problem.

If she is executor or trustee, isn't she required to administer those entities and satisfy any debts, including tax debts, of the estate before any inheritance payouts? The last thing she would want to happen is to have IRS create a SFR later on and come knocking.

[Medlin Software, Dennis]

At this point, the only sane advice is to suggest they work with a qualified probate form, local to the locality where any property in the decedent's name is located. There is absolutely zero reason not to use proper representation when the estate may leave a positive balance.

[DANRVAN]

3 hours ago, Donald Hughes said:

It was filed as MFS as the TP had previously filed her return.

Have you considered filing 1040-X as MFJ to decrease the overall tax liability?

Was there any tax savings by filing MFS?

[DANRVAN]

3 hours ago, Donald Hughes said:

There is a balance due IRS

 

3 hours ago, Donald Hughes said:

She wants to know if there is a way she can get off the hook for paying the balance due

She need to talk to an attorney to answer that, my guess is the IRS could seize any property that was separately or jointly owned by deceased spouse.

How much balance due are you talking about?

[mcb39]

I don't see this being an issue in a Community Property State.  Correct me if I am wrong.  She needs to pay.