Solved: Late filing of an estate return. How to combat the late fees?

hbrossandco · ‎12-07-2019

Client has very small estate. Person is living and the estate only holds some stock. There has been no activity on the account for 6 years and they haven't filed. This year some stock was sold and the return needs to be filed. How do we deal with the late filing fees? Should I go back and file the zero returns for the prior years? If so, how (if possible) can the late fees be abated or reduced?

Any help will be most appreciated.

Thanking you in advance.

IRonMaN · ‎12-07-2019

I'm a little confused. How do you have an estate for a living person? Are you referring to a non-revocable trust instead of an estate?

Slava Ukraini!

View solution in original post

IRonMaN · ‎12-07-2019

I'm a little confused. How do you have an estate for a living person? Are you referring to a non-revocable trust instead of an estate?

Slava Ukraini!

George4Tacks · ‎12-07-2019

"There has been no activity on the account for 6 years and they haven't filed" = Don't file, if not need.

I believe that you may have a grantor trust, unless the trust was created due to the death of a joint tenant. You should definitely get a copy of the trust (or the will if it really is an estate).

Before you start to freak out over penalties, you need to determine if you are able to complete a proper return. If so, is there a tax due and who is liable for the tax. If not, find a more capable preparer to refer the client to.

Here's wishing you many Happy Returns

Late filing of an estate return. How to combat the late fees?

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