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DEATH



Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.

If it is a joint tax liability and the secondary taxpayer is deceased, then pursue tax collection from the primary taxpayer.  If it is a joint tax liability and the primary taxpayer is deceased, then pursue tax collection from the secondary taxpayer.  If it is a joint tax liability and both taxpayers are deceased, then pursue tax collection based on the guidelines for a single deceased taxpayer.

The Internal Revenue Service (“IRS”) can also look to the fiduciary of the decedent’s estate and to the recipients of the decedent’s assets.  A fiduciary of the decedent’s estate can be provided with notice of the IRS’s claim via a:  (i) proof of claim; (ii) Form 10492 Notice of Federal Taxes Due; (iii) Notice of Federal Tax Lien; or (iv) any other type of notice.  A fiduciary, of the decedent’s estate, can be exposed to personal liability for paying other debts ahead of priority tax claims of which the IRS had provided notice.  A recipient of the decedent’s assets can also be held liable for the tax liability based on various third (3rd) party liability theories:  (i) transferee liability; (ii) successor liability; or (iii) nominee or alter ego liability.  Third (3rd) party liability theories typically contain an element of fraud in the overall factual basis.

Benjamin Franklin, in a letter to Jean-Baptiste Leroy, 1789
Internal Revenue Manual §5.5.3
Internal Revenue Manual §5.17.13
Internal Revenue Manual §5.17.14