Taxes of the deceased, But he never filed in the past.. How do I move forward.

[Opus 17]

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@sbpilates wrote:

As I stated. he did make a good sized gain in 2021 that he then rolled in to Crypto and lost in 2022. Right now my concern is the Gain he made in 2021.   His only other source of income was SS and i think that was under the 25K.   Thus the Question How do i move forward since he has no IRS records that they can find.  the last 3 years of Transcripts simply came back as nothing on file.  And that shoudl have been for his Income and Taxes paid or due.

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Well, you are only responsible for 2022, as far as I know.

If you know the name of the broker, you can ask them for a copy of his 2021 account statements and 1099-B form.  I have no idea why the form might not be in the transcript.

And as mentioned, depending on what stocks he inherited and when he inherited them, he might not actually have any gain at all, or any taxable gain.  For example, suppose he inherited stock on Feb 1, 2021 that had a fair market value at the time of $100,000.  If he sold on Feb 2, 2022 for $100,001, he would have a $1 gain even though he made $100,000.  If he sold it in June for $90,000 due to the decline in the market, he would have a $10,000 loss, even though he realized $90,000 of new cash in his pocket.  (If he purchased the stocks himself many year ago, he would probably have a gain, but if he inherited them, he may have had no gain or even a loss.)

[Opus 17]

@sbpilates 

I'm sure you can get an extension from the court for cause.

As I said, you are still in the information gathering phase.  Did he inherit cash from his parents?  Or securities?  If cash, what did he invest in that had a gain in 2021 when everything else was going down?  Where is the 1099 from the broker in 2021?  Why assume he had 10 years of missed tax returns if, in most of those years, his only income was social security.

Gather your information and try not to worry so much.  

[sbpilates]

He did not inherit Stocks.. He used Funds from an inheritance to buy them.. They they did really well.. 

He took the Gain and reinvested it in Crypto.  As Far as I have been told. I am responsible for the Final year taxes and Anything I am aware of..  So if the IRS can see that he had a big gain in 2021 then it seems logical that the IRS will think I shoudl have known he had this gain and should be filing his return for 2021.   ?
And that get us back to where i was..  How Do i file his Return if he basically did not ever exists to the IRS before this point?  

[Opus 17]

@sbpilates 

I think you are too busy worrying.  I have already outlined several steps.

Start with the broker he used in 2021.  If you don't know the name of the broker, then get access to his bank account and look for the large deposit you think is there.  Then go to the broker and ask for copies of his statements and his 1099s.  If the broker didn't issue any 1099s ask why.  The statements should show you the gains and you can calculate the tax using the statements if you don't have 1099s.

Wait until Feb 10 for any current year 1099s or W-2s.  If they don't come, go back to the bank statement and look for more deposits coming from an employer or broker.  Then contact the employer for a copy of the W-2.

If you haven't already checked his home for account statements and records (bank, broker, employer pay stubs, checkbook, etc.) you should be doing that soon.  He would at least maybe have a debit card in his wallet if he passed away suddenly, that could be the key to the bank, and the bank will be the key to everything else. 

For each business you need to contact, you will probably need to send them an official (certified) copy of the death certificate plus a copy of your appointment as personal representative.  You may need to order extra certified copies of the death certificate from the registrar.  

[sbpilates]

Did he inherit cash from his parents? Or securities? If cash, what did he invest in that had a gain in 2021 when everything else was going down?
No.

He invested in Stocks mostly NVIDIA,  And they did very well in 2021.

Where is the 1099 from the broker in 2021?

Good question.  Thus the reason i went to the IRS to find out.  As hes no longer with us I can only go by the info thats available to me.. And since he never ever filed taxes he had no reason to keep documents.

Thus my Original Question.  How can i get info from the IRS in regards to what they think he may owe.,?

Why assume he had 10 years of missed tax returns if, in most of those years, his only income was social security?

This is not an assumption. I know he never filed taxes in his 74 years.  Yes it true he worked in normal w4 type jobs that collected taxes in Payroll on his behalf and likly he was owed a refund.    But He still never ever filed any returns.  So I am Assuming the IRS will want to go back as far as they can. (10 years ) Or more.

Lastly, He did not move funds from the Brokerage account to his bank. he moved them to his Coin base account direct from the Brokerage account.  So far the Brokerage account is being difficult telling me to supina the past records from them.   Sadly all of these people have been extremely difficult to deal with.
And thank you. PS. I am not worrying.. I am doing the job..