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The estate is responsible for the tax debts of the deceased. That means before the estate can be settled, all debts, including taxes, have to be cleared. If there is not enough in the estate to cover them, they may not get paid.
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∙ 12y ago
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Is sister responsible for deceased brother debt if no will and claims him as tax dependent?
It will depend on whether she was listed in the debt documents. In most cases the estate will be responsible and if there are not enough assets, the debt goes unpaid.
Are spouses responsible for tax debt?
That is a great questions and it relies on a couple key points of information. A spouse is only responsible for tax debt if they: A. filed a joint return during the year the tax event (or debt) occurred B. The spouse filed separately, but shares a bank account with an individual who has a tax lien or levy filed against them as the IRS may seize the bank account (and in doing so seize the spouses money as well). The good news is there are ways to detach a spouse from the liability via an Innocent spouse claim. Additionally, there are many ways to resolve back tax debt via IRS resolution programs aimed at assisting tax payers to resolve back tax liabilities. These include IRS settlements, income based repayment plans, and/or non collectible statuses where the tax payer's expenses exceed their income and show they have an inability to afford the tax debt. We always recommend consulting with an experienced tax practitioner who deals specifically with back tax debt and IRS & State tax resolutions.
Tax debt is what type of debt to a company?
Tax debt refers to the tax paid on the amount of debt the company has outstanding still. This varies significantly by company and non-profits do not pay tax.
Since I am a signer on my mom's checking account when she dies will any of her tax debt be transferred to me?
Yes. Any tax liabilities that are due from a deceased individual get transferred to their legal heir. Since you are your mother's legal heir and a co-signer in her checking account, her tax debt would be transferred to you after her death. You need to pay the tax money your mother owes the government
If you become power of attorney for a deceased sibling can you be held responsible for their debt?
No. There seems to be some confusion as a POA becomes null and void upon the death of the grantor. However, the POA grantee is never responsible for the debt of the grantor beyond said grantor's financial assets.
If a dependent parent dies are the children responsible for the tax debt?
If a dependent parent dies then the estate will be responsible for their tax debt. If you are over their estate then you would have to ensure that the government gets their taxes.
Who is responsible for a persons debt after death?
The person who the will go with.
Is sister responsible for deceased brother debt if no will and claims him as tax dependent?
It will depend on whether she was listed in the debt documents. In most cases the estate will be responsible and if there are not enough assets, the debt goes unpaid.
Am I responsible for credit card debt or tax debt on death of spouse?
The estate of the spouse is responsible. IF both are on the same checking account then the FULL amount of that checking account can be considered the spouses estate too. Even if the account is closed just prior or just after death, then the amount in the account months prior is still considered a portion of the estate.
Are minor heirs responsible for debt after death?
Heirs are not responsible for any debt. The debt is the responsibility of the estate. If there are not adequate assets, the debtors don't get paid and the heirs will not receive anything.
You were just wondering if a Cosigner responsible for tax on a cancellation of debt for taxes1099C?
No, I don't think you would ever be responsible for their taxes. You may be liable for their debt though... agreeably a different matter.
Who is responsible for School debt after death?
The borrower, i.e., the person who signed the note, is responsible for payment. If the borrower has died their estate is responsible. If there is no estate the creditor is out of luck. If there was a co-signer then they will be held responsible for paying the debt.
Who is responsible for credit card debt after death in the state of Illinois?
Actually, the answer is the credit card holder is responsible for the debt if single, otherwise the spouse may be responsible for a partners debts. If it was made while they were married, otherwise, the bank can't collect the debt.
Who is responsible for your card debt in England upon your death?
Your estate is responsible. Other card holders on the account have a responsibility as well.
Is spouse responsible for medical debt after spouse's death if bills were incurred prior to marriage?
no.
Are children responsible for parent debt after their death in VA?
The child is not responsible for the debts of the parents. The estate has to resolve all of these before they can close it out.
Who is responsible for student loan debt after your death?
The student's estate is responsible for paying their debt unless there was a co-signer. If there is no estate the lender is out of luck. If there was a co-signer the lender will seek payment from that party.
