TP death question

[elfling]

I received word today about the death of a client. The information came from a non-related person who lives in the neighborhood. I then confirmed the death by checking the obits. Typically, this is not an issue but in this case I still have paperwork from 2007 in hand.

Calls to the now-deceased client beginning last August were never returned. He knew when he dropped the paperwork off that he would owe IRS. I don't beleive he realized how much it would amount to, in the thousands. One of my answering messages to him simply stated that the amount was sizable.

I am aware of no surviving family members. His mother passed on a few years ago. He never married nor had children. But if there is someone out there I feel as though they should be notified, if nothing else, that I possess documents that belonged to him.

Thoughts on how I should go about this? I considered sending a letter to the address in my files and perhaps it will forward somewhere. Or I thought about perhaps speaking to the funeral director for input.

Anyone?

[Virtual Managed Solutions]

I considered sending a letter to the address in my files and perhaps it will forward somewhere. Or I thought about perhaps speaking to the funeral director for input.

I am not a tax professional, nor have I ever had to do anything like this. Although, the suggestions you put out there are good ones. I personally like the second option. Family, or someone close to the deceased, would be the first ones to assist in funeral arrangements. If the director is allowed to give out info like that, that would be your best bet. Even if he cannot relay info such as that, I'm sure he'd help in ways that he could. Wouldn't hurt anything to give it a try?

[BulldogTom]

This is terrible, but my first thought was "Did you get paid in advance, or are you on the hook for the work"?

My second thought was, there must be an estate administrator. Even if it goes to the state to handle, there will be an estate administrator. Funeral homes are not free, they know who is paying the bills, so that would be a great place to start.

My third thought was, call the IRS and let them give you advice.

I don't like my third thought.

Tom

Lodi, CA

[Jake]

I would probably send a letter to the last known address indicating that the client has an unfiled tax return and offering my assistance in getting the 07, 08 and 09 tax returns filed. I would put a copy of the letter in the clients file and put it in the back of my filing cabinet and never think of it again unless I actually heard from somebody. A couple of years ago I had a client die that had a payment plan established with the IRS. At the request of the clients significant other (non spouse) I called the IRS to let them know that he had died and that they would not be receiving any more payments. The IRS allredy knew that he had died.

[OldJack]

>>The IRS allredy knew that he had died. <<

Big brother knows all.

[elfling]

Thank you all for your input.

I know the funeral director, Tom, and will speak to him. Everyone knows everyone in a small town like ours. I could end up that the state steps in due to the circumstances of his death.

As for my fees, the return was never finished. Just a preliminary work up so I don't mind letting it go. On the other hand, should whoever ends up managing the estate request billing or an invoice I won't snub my nose at the offer for appropriate payment.

[BulldogTom]

I won't snub my nose at the offer for appropriate payment.

Good for you. We must always remember that we do this to make a profit. Remember tha about 4/12/09 when that guy comes in with a "simple return" that needs to be filed.

Tom

Lodi, cA