I just got off the phone with IRS after an hour wait. I want to confirm information they gave me because it still conflicts with what I have read online. I got a CP2000 form from the IRS for my 2021 tax return. My mom had passed and her TRS and an insurance claim both showed up and they stated I did not report them as income. I am the executor of my mother's estate and I also had a joint account with her prior to her death. When I mentioned to the IRS assistor about Texas not having an inheritance tax, she said that was state level, not federal. Her recommendation after more discussion was to disagree with the changes and report that I did a family distribution from that joint account(which I had done in 2021). But, they do want both of my siblings names and social security numbers. I hung up and then got to thinking. Does this mean they will now probably send a CP2000 to my siblings asking them for money ? So, long winded but two questions. 1) Should the IRS be trying to get more money on this inheritance(in relation to my reading on TEXAS laws) ?
2) Should I give my siblings information to the IRS or just pay the amount difference(if answer one does not apply) ?
I don't mind doing things correctly, but I never remembered getting any kind of forms I could have added to my 2021 personal tax forms. Which might bring up a third question since I use TurboTax
3) I don't recall any guidance on inheritance money as I do my taxes. Is there a section related to that on a personal tax return ?
