Deleted
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Post by Deleted on Sept 12, 2012 16:05:28 GMT -5
Hello Tax Talk Folks, DH and I moved back to the States and had over 300 boxes to unpack!  Now we are in the process of re-packing stuff to get rid of. Of the many boxes of records I'm considering shredding are my deceased mother's tax records from 2006 & 2007. As I recall, there's a 4 year statute of limitations on audits. She was a real estate agent and all income (commission) was reported via 1099. She had one small rental property with some negative cash flow. Please, please can I get rid of this box? |
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mwcpa
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Post by mwcpa on Sept 12, 2012 18:05:50 GMT -5
the "statute" to review a tax filing is generally 3 years after the tax return is filed.
So, if the 2006 tax return was filed by 4/15/2007 then 4/15/2010 was the last day that IRS could generally audit this filing.
It seems both years are "closed" years.
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TheOtherMe
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Post by TheOtherMe on Sept 12, 2012 18:13:31 GMT -5
As long as she filed on time.  |
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Post by Deleted on Sept 12, 2012 19:04:38 GMT -5
Only 3 years? Great; I can shred even more! Yea! "As long as she filed on time." I'll double check and thanks to both of you! |
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TheOtherMe
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Post by TheOtherMe on Sept 12, 2012 20:43:25 GMT -5
Check the state statute of limitations also. The state statute where I live is one year after the federal statute of limitations.
I will add to the word "general". In cases of substantial understatement of income (25%), statute is 6 years. In cases of fraud it is technically forever. However, IRS isn't going back that far on somebody who is deceased. I'm retired IRS agent and I do know that. It would have to be a really big fish before they would go after an estate.
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Post by Deleted on Sept 12, 2012 23:30:38 GMT -5
Thanks TheO,
If my mother did any under reporting it would be so small, it wouldn't be worth the manpower. Plus her estate was substantially underwater (about $400k) when she died. I keep waiting for the 1099c (?) from her HELOC lender writing off the nearly $300k uncollectible 2 nd loan. I did the final estate return in 2010 and can't wait to close out those records too.
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rangerj
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Post by rangerj on Sept 13, 2012 14:13:18 GMT -5
If you get a 1099c send in a change of address form for the dearly DEPARTED AND LIST THE CEMETERY ADDRESS AS THE NEW ADDRESS. Sorry I hit the cap lock key.  You know what they say if they can't take a joke. |
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Post by Deleted on Sept 13, 2012 16:48:03 GMT -5
Hmmmmm... Do you think the IRS will find it funny if I say an urn in my brother's guest room? But I'm thinking he won't think it's funny since he's got his own IRS issues. He had to learn the hard way you don't mess around with THE MAN! |
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TheOtherMe
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Post by TheOtherMe on Sept 13, 2012 21:06:34 GMT -5
Or WOMAN? says the retired IRS agent.
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Now we are in the process of re-packing stuff to get rid of. Of the many boxes of records I'm considering shredding are my deceased mother's tax records from 2006 & 2007.
You know what they say if they can't take a joke. 