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Anne
Anne, Master Tax Preparer
Category: Tax
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Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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My mother past away June 2013. In March 2014, rcvd a letter

Customer Question

My mother past away June 2013. In March 2014, rcvd a letter from lawyer, saying " The Helen Sylvia Cohen Administrative TRust. There is $125k currently in Helen's trust account, but beneficiaries cant' rcvd monies subject to an IRS audit. In such event, said amt will be utilized to pay for possible tax liabilities resulting from the audit, and/or accounting and legal fees. In any event, however, any and all funds currently in the Trust account will be held therein until the statute of limitations for collections by the IRS ends. ....How long is this statute of limitations??? bot***** *****ne.
Assistant: Thanks. Can you give me any more details about your issue?
Customer: All siblings rcvd their monies/trusts right after mom's death...ok fine. Then March 2014 rcvd this letter from the lawyer to advise us of this $125,684 left, but can't be distributed until statute of limitation for collection by the IRS ends..When does that end? Would like my share of the $125k
Submitted: 20 days ago.
Category: Tax
Expert:  Anne replied 20 days ago.

Hi

I'm Anne & I've been preparing taxes for 28 years. I'm reviewing your question now, and will post back with your reply momentarily.

Expert:  Anne replied 20 days ago.

Hi

First let me tell you how sorry I am for your loss. Losing our parents is never easy, I know, but to have to deal with an audit on top of your loss must be incredibly hard.

The statute of limitations for collections is 10 years. Please see below:

http://www.nolo.com/legal-encyclopedia/time-limits-irs-collections.html

If I were you, I would be contacting the administrator of the trust, and asking some questions re: what in formation they have on the audit, and how are they handling it. What forms have they filed with the IRS re: the audit, etc.

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Expert:  Anne replied 17 days ago.

HI

I see that you read my response, but did not yet rate positive.

Do you have follow up questions I can help you with?

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