When my Mother died I was named executor. I paid the bills, several years of back taxes ( she had Altzheimers and had not paid her taxes), and made the distribution of funds. The estate was approved by the court and closed, and I have been discharged from my executor duties. Now the IRS and NC Dept of Revenue are wanting interest and pentalties on her taxes. What can I do? I'm not paying them. Help.Laura
State/Country relating to question: North Carolina
I am afraid that as executor, while you may have paid her back taxes as part of that payment you were liable to also pay any interest and penalties as well or negotiate to have them waived at that time. If you failed to properly negotiate the settlement on the back taxes, these monies are still due and you can become personally liable as the executor for improperly settling her estate. Thus, you will now need to either get a local tax attorney to negotiate a settlement of payment of the penalties and interest or you will have to negotiate a payment yourself if you choose. Even if you were discharged of your duties, government debts are still collectible if you improperly filed the taxes late without including penalties and interest and your only hope here is to seek to negotiate with the IRS and NC to take less than what they are seeking or they will pursue you personally for improperly discharging your duties as executor.
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