Estate & Trust Tax Compliance: Tackling Unresolved Tax Problems Loved Ones Leave Behind
When someone passes away, their tax obligations do not automatically go away. Furthermore, estate and inheritance tax matters can significantly impact the assets passed on to loved ones. Seeking guidance from a tax attorney experienced in handling estate and trust tax issues can help individuals create a strategy that protects wealth and ensures compliance with tax laws.
The executor or trustee of an estate or trust must ensure that:
The decedent’s tax filings are up to date.
The estate or trust liabilities, including tax liabilities, are paid before distribution of assets to heirs or beneficiaries.
If the tax returns are not all filed and/or the estate or trust liabilities are not properly paid in accordance with state and federal rules of priority, the executor/personal representative or trustee could face personal liability for the tax liabilities the estate or trust owes.
When searching for an estate tax attorney that assists with estate, probate, or trust tax issues, it is important to find someone who understands both the estate or trust administration process and complex tax compliance requirements. The right legal support can make getting in compliance smoother and provide confidence throughout the process.
Working with a dual licensed Attorney-CPA can provide taxpayers with the added advantage of having a tax professional who can prepare any necessary unfiled tax returns and a tax lawyer who can provide legal advice on options available to resolve unpaid taxes, wrapped up into one service. Some of the added benefits of engaging an Attorney-CPA include:
Tax Compliance & Legal Strategy in One Professional: Avoid the inefficiencies of working with separate tax preparation and legal firms. Attorney-CPAs can prepare unfiled tax returns and counsel on the best resolution options available for taxes owed through a cohesive legal strategy.
Attorney-Client Privilege: Tax preparers offer limited privileges, while attorney-client privilege is maintained for legal advice. This offers protection when navigating sensitive IRS issues such as unfiled tax returns and unpaid taxes.
Dealing with estate or trust tax issues after the passing of a loved one is complex and stressful. Getting advice from an experienced tax attorney near you that handles estate and trust tax compliance problems can help navigate the process and avoid further issues when administering an estate or trust. Additionally, reasonable legal and tax accounting fees incurred to resolve tax issues are generally an administrative expense payable from estate or trust assets. Contact us today to discuss how our tax attorneys experienced in handling estate and trust tax problems can help.
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