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The income tax should have been paid by the owner
Was the estate probated?
When the estate went through probate, there should have been notice published for any creditors (including the IRS) to make claims against the estate
No. There was no will. Very small estate. Utilized Small Estate Affidavit process for settling up affairs
OK, once the estate has been closed it's closed
If the estate is considered closed, does heir have to file ameneded returns for the past years interest? Hard to imagine the State sending out 1099 notices for interest when the state does not have an address for the person. So, does this mean cumulative unreported interest taxed to heir in year of receipt of unclaimed property? Thanks
It would have been the bank that sent out 1099s (certainly while the person was alive)
Let me check comething
I bet you could call the cTX comptrollers office and ask the question, conceptually
1-800-654-FIND (3463).1-512-463-3120 (direct in Austin)
OK - gotta run. Thank you very much !
The worse case scenario? Heir owes income taxes since the estate was closed