Which do I need, a CPA or an Enrolled Agent?

[rprastein]

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.

[Mike9241]

which would be better depends on the capabilities of the individual which vary. I suggest you interview a few of each and you might also want to interview some tax attorneys.   Some may not want to handle the situation because of the issue of getting info from more than 10 years ago. Try to get an estimated of their charges or perhaps a cap because it seems they are going to have to devote a lot of time and effort into resolving these issues. Also, there best estimate of what might be owed in taxes, penalties and interest. The IRS (and states) have the right to collect debts from the estate and the estate is responsible for settling these debts before distributing assets to the beneficiaries.  Whether the executor has any personal responsibility if this wasn't done is best ask of the pro. 

[AmeliesUncle]

As Mike said, neither designation has an advantage over the other for your situation.  But you should look for one that specializes in preparing late returns and fixing prior problems.

[rprastein]

Thanks.  That's kind of what I was thinking, but I wanted to get an independent opinion.    Any suggestions where to look besides Yelp?

[rprastein]

Yes, looking for someone with expertise in late filings and resolving problems is a given.  So if there's not an obvious choice here, I'll be looking at both.