IRS Form Letter Response Advice

Jul 13, 2008 4 Replies

Received letter addressed to mother, decd., noting no 1040 filed for



2006 (deceased 12/05).

Do (and did) file 1041 for the trust beginning in '06 (under trust TID, of course).



I suppose the reason the form letter was generated was that one investment (a realty limited partnership) was overlooked when transferring assets into the trust before and, therefore, wasn't thought of after so generated a K-1 under her SSN. It was included on the 1041 and proceedings initiated to get the registration corrected.



Finally, the question--the form has no real way to answer the question in the check boxes, specifically.



There's a line for why not required to file which I presume I can simply state "deceased" but should I amplify that a 1041 was filed for the trust or since that isn't the specific taxpayer in reference would that add additional confusion rather than clarify?



Also, there's a question on "total income" in '06 -- anything that did still have her SSN the above K-1 and some gas royalties were reported w/ the 1041. Should those be indicated I suppose so they don't have a mismatch on documents compared here even though were reported?



I know, revised K-1 would have been nice, but I'm still fighting the name change, the likelihood of these folks responding to send a revised K-1 is about a snowball's chances in July... The royalties were another similar case of simply it taking such a long time to get the payors to update their records.



My inclination would be to simply state "deceased" and any income under the SSN was reported on the 1041 and giving that TID. Other ideas/suggestions?


Throw in a copy of the death certificate as an attachment.

AND request that they remove her name from their mailing lists. (grin

ChEAr$, Harlan Lunsford, EA n LA

Ha! Don't think IRS would ever remove a name, would they? Might always be blood in them there turnips, eh? Of course, if were sent to her previous residence instead of ours, it would have been returned as undeliverable... :)

Another thought I hadn't thought before, would be that I could, I suppose, since I'm not the taxpayer in question, ignore it? I don't really propose doing that, but what could they do? :)

I was wondering about the "income" question, though--should I go to the trouble/effort to go back through the royalty statements, etc., to actually report $$ that were in her SSN that were reported on the 1041 or just use the action description and see if that satisfies?

Thanks for the input...

I'm not an accountant, but in my own life I have frequently had to deal with income that was reported to the IRS under my SSN but was filed under another SSN/EIN. In all cases, a note to the IRS stating that along with the ID number under which it was reported satisfied them. I presume the same would be the case in your circumstance.

--ron

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