My father recently passed away and we are working through all of his financials. Unfortunately, we have discovered that he did not file his taxes the last few years. He has a couple of IRAs that it looks like he did not take the RMDs either. We are trying to figure out how to handle the RMDs and filing past year taxes.
I have found a couple of articles on the internet that have said stated if we fully liquidate the IRAs within 5 years of his death that we do not have to be concerned with missed prior RMDs. Basically, I assume this is because the full liquidation of the account will get the IRS their money.
Can anyone point me to an actual IRS publication, or part of tax law, that states this? I have looked at publication 590b but did not really see anything that stood out related to this.
Thank you.
-k.
