I have a 86 year old mother-in-law that has lived with us for about 10 years. During that whole time we have paid well over 50% of her upkeep and have claimed her as a dependent on our joint returns. Since she has a very small income from a little pension, SS, and some stock- approximately $3000, she has not filed for most of that time. I have included her income on my filing but never went into the details. She got a letter from AZ state that for 2001 they received a
1099 from one stock, but don't have a return from her. Any suggestions? I suppose I could file amended returns for her for all those years, but she wouldn't pay any taxes anyway. Is there anyway to avoid the hassle? Chip