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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28922
Experience:  Taxes, Immigration, Labor Relations
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When my husband died 3 years ago he had a charge account in

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When my husband died 3 years ago he had a charge account in his name only and for his use only. I sent a death certificate and a letter to the card holder stating that he did not have an estate. This year I received a letter from the card holder telling me that they had finally written it off and that they had notified the IRS of the amount aproximately 1800.00. My question is do I have to file with the IRS because this is considered part of his would be estate?

LEV :

Hi and welcome to Just Answer!

LEV :

All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent.


That is true for all income types including forgiven debt. Generally - that amount should be reported on the estate tax return form 1041 and because the estate is insolvent - the form 982 should be used to exclude that amount from taxable income.

LEV :

In your specific situation - to avoid additional expenses for filing the estate tax return - I suggest to write a letter to the IRS with explanation - attach a copy of the death certificate and a copy of the form 1099-C asking to close the decedent's account. You may just walk into your local IRS office - see locations here - http://www.irs.gov/localcontacts/article/0,,id=98330,00.html - no appointment is necessary. You will discuss your issues with an IRS representative across the counter and handle the letter.

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