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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15344
Experience:  15years with H & R Block. Divisional leader, Instructor
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My mom passed away in 2015 before filing her 2014 taxes. She

Customer Question

My mom passed away in 2015 before filing her 2014 taxes. She was the sole owner of a driving school, an LLC. She died insolvant and there was no probate. I closed her driving school and opened my own with a new tax Id number and a slightly different name. I am honoring her contacts with students so I am actually losing money right now ad a lot of students prepaid with her and I am teaching them for free. I met with her tax accountant and we electronically filed her taxes. She owed $50 to the state of Wisconsin which I paid for from my personal funds. She owes about $3000 to the federal government. Am I responsible for this?
Submitted: 2 years ago.
Category: Tax
Expert:  Robin D. replied 2 years ago.

Hello and thanks for trusting me to help you today. I am a tax adviser with over 20 years of experience. No you would not be responsible personally for the tax debt. If her estate had the money to pay then the estate would be responsible for the tax owed. If your mother had property that passed t a beneficiary then the beneficiary may be contacted to secure the tax but if she had no assets and nothing passed to anyone then the tax will not be collected from you. If research by the IRS verifies there are no assets, the account may be closed uncollectible without a lien filed.

I offer my condolences on your loss.

Customer: replied 2 years ago.

Do I need to send something to the IRS to notify them or wait for them to figure it out on their own?

Expert:  Robin D. replied 2 years ago.
The return itself marked as deceased would be notification for them. If you receive any notice take it immediately to the professional that prepared the return so they can respond as the preparer.
Expert:  Robin D. replied 2 years ago.
Please let me know if you need more information. I want to make certain you understand your situation.
Customer: replied 2 years ago.

I was a little worried they would come after my new business for her tax debts. It's at the same address and same phone number, but a new tax number.

Expert:  Robin D. replied 2 years ago.
If you closed her business and did not take it over as the executor of her estate then you are fine.Having the same address is not the same as inheriting her business and continuing on with that or administering the business for the estate.As long as her business was closed then you should be fine. Speak with her accountant and make certain they filed all final returns. If she was a sole prop the the final 1040 with Schedule C but if she was incorporated there would have been additional forms marked as final and state requirements to close the corporation.
Customer: replied 2 years ago.

She died in February. Will we have to file 2015 taxes as her final taxes?

Expert:  Robin D. replied 2 years ago.
Yes if your mother passed away in 2015 and she had income that required a tax return that would be her final year for filing.
The business could have been closed prior to the filing date of course.
Expert:  Robin D. replied 2 years ago.
Wanted to touch base with you and make sure all worked out.