My father passed away in 2023 due to complications of dementia and cerebrovascular disease. For most of the 10 years prior to his death, he failed to file income tax returns, both federal and in 4 states (IL, CA, NC, SC). He also failed to take required minimum distributions for a number of years, because of one financial institution not being set up to take them out automatically.
I got his RMDs caught up during the last 2 years of his life and got a couple of his federal tax returns and a few of his state returns filed, but even two years after his death I have not made much headway. I'm looking for a professional to finish the job.
I anticipate 25% penalties on the unpaid taxes, and I don't know how much the interest charges will be. I'm hoping that because of the dementia, a one-time request for forgiveness will be granted for all of the late RMDs. I am also concerned that because of the unfiled tax returns, Medicare premiums were undercharged for a number of years. Will they try to recover that from his tax estate, once the delinquent returns are filed?
Note: There is no probate involved in any of this, as most of the tax estate was either paid or transferred on death (POD or TOD) to Dad's 5 children. We have all contributed a share of our inheritances to an account that I will use to pay the back taxes and penalties.
Anyway, as the title asks, would a CPA or an Enrolled Agent be more appropriate? Thanks.
