IRS Can Share
Decedent's Tax Information With Beneficiaries

Courtesy of The Mellems


Generally the Internal Revenue Code prohibits the disclosure of one taxpayer's tax information to any other taxpayer. In some cases the information can be shared such as the sharing of a partnership tax return with a partner or an estate income tax return with a beneficiary.

In this ruling the IRS states income tax information of a decedent who died intestate (without a will) can be shared with the beneficiaries of the decedent's probate estate. The information on the decedent's tax returns for years prior to the decedent's death can be important to any heir at law, or next of kin who is a distributee of the decedent's probate estate under state law. This information can be useful in finding assets or other information that could affect the distribution to the distributee, therefore having a material effect on the distributee's tax return.

The distributee must give the IRS a written request asking for the information and include documentation that shows he/she has a material interest that could be affected by the decedent's return such as a copy of the petition for probate. The request must be accompanied by proof of the decedent's place and date of death as well as state of residence. The distributee must also include proof of his/her relationship to the decedent such as a copy of a birth certificate, baptismal certificate, or insurance designation. Full details can be found in Revenue Ruling 2004-68. The ruling can be found at www.irs.gov/pub/ by clicking on irs-drop and then clicking on "rr 04-68".

This text has been shared with you courtesy of: David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (fax 920-496-9111) davidmellem@yahoo.com & marymellem@yahoo.com

ŠAshwaubenon Tax Professionals. No reproduction of this article is permitted without the express consent of Ashwaubenon Tax Professionals, 2140 Holmgren Way, Suite 1040, Green Bay, WI 54304.


Courtesy The Mellems
Published TaxMama.com 9.03.04