From: Decatur, IL.

Dear TaxMama,

My brother lived with me for 4 months in 2003.

He took his own life in June 2003. 

When I received his W-2 forms in the mail, I filed his final Federal taxes (correctly for a deceased taxpayer).

The other day I received a CP-2000 in both mine and his
name for the tax year 2002. 

I have no idea if it is correct or not. I do not have any documentation.

He had no estate, no wife, no children.

Can the IRS hold me responsible for tax returns he filed when he was alive, and bill me for the deficiency?

He was not my dependent, he was 40 years old. 

How do I deal with this situation since I need to respond to this notice?


Joanna

Dear Joanna,

You were so wonderful to take care of your brother for the time he was with you. What a frightening experience that must have been.

It's not clear why you received a CP-2000 in both your names. Was it for him, sent to you as his executor or power of attorney?

Or did you each get a CP-2000 showing a similar thing missing?

If it was strictly for him, relating to his income, all you need to do is to write to IRS and tell them that he has died and there are no assets from which to pay any additional tax.

(You did say that he owned nothing, right?)

Attach a photocopy of the death certificate.

It may take a couple of letters, as you cross paths with the IRS computers (the series of letters that start with the CP-2000 are automated).  But by the third time you respond, it should be cleared up.

If you find yourself getting frustrated with the series, then, call IRS early in the morning (not on a Monday) and be prepared to fax the information to the staff person who takes your call. Just be sure to get that person's name, ID # and note the date and time of the conversation and fax. In fact, ask them to fax you a response.

If he had owned anything, like a bank account, or other assets, IRS might be able to follow the money and collect from you, if they were to make an assessment. It would all depend on who had any prior claims on that money, or if he had any secured debt that needed to be paid off.

As if it weren't stressful enough dealing with the death and settling things in the first place. Sheesh.

This should take care of, at least, this issue.

Best wishes,

Eva Rosenberg, MBA, EA