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Can You Inherit a Deceased Person’s Tax Debt?

Can You Inherit a Deceased Person’s Tax Debt?

By on Jun 22, 2017 in Tax Problems | 0 comments


Where to Get Texas Property Tax Relief HelpThink of it this way: if you expect to inherit a deceased person’s money and estate, then you can expect to inherit everything else that comes along with it, including tax debt.

Even though a loved one may have passed away, the outstanding debt to banks, credit card companies, and the IRS are still expecting a payment.

In the event of a death, the deceased person has ideally left an administrator to take care of his or her estate. If he or she did not do this, then probate court will appoint one. That person will handle the responsibility of taking care of the deceased person’s taxes.

Death After Taxes

Even when a person passes away, his or her tax debt obligations need to be reported up until the day he or she expires. The Internal Revenue Service (IRS) is very adamant about having United States taxpayers being accountable for their tax debt, even after death. This might be where the IRS’s intimidating reputation comes from, because when it comes to collecting taxes, not even death is an excuse. And whoever has inherited the responsibility of taking care of the deceased person’s estate needs to take action as if the tax debt is their own personal finances.

Inheriting the Deceased Person’s Responsibility

This is nothing to take lightly. The IRS will not let up just because that person has passed away. They will still take all of the necessary actions to collect the tax money that is owed to them. The only difference is whom they’ll look to as the administrator. There’s a chance that if you are the sole heir of the deceased person’s estate, then that responsibility will lie with you.

Finding Help to Carry the Burden of an Estate

A death of a loved one isn’t an easy burden to bear, and it’s understandable how managing an estate can be overwhelming. That’s why it might be a good idea to look for trusted professionals to handle your loved one’s tax obligations for you. While there are lawyers who usually take care of managing the estate of the deceased, a team of tax professionals who have over 30 years of resolving tax issues of all kinds, including taking care of the tax responsibilities of the deceased, might be the best option for you.

Life After Death Regarding Taxes

If a person dies while they are still in debt to the IRS, then the IRS will immediately put a lien against the deceased person’s assets. It doesn’t matter if that person has named a beneficiary as the heir. Once the IRS’s debt has been paid in full, then any beneficiaries of the deceased estate will be handed down to them.

Also, for the following tax year, the administrator will still need to file annual taxes for the deceased for that year he or she expired. In that case, one of our tax lawyers can assist you on how to properly take care of filing that person’s annual taxes. However, the likelihood of submitting an annual filing remains if he or she still owes the IRS.

Death and taxes can be a complicated issue. Contact Success Tax Relief for a free consultation today at 877-825-1179 or contact us online.


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