Updated almost 12 years ago on .
Probate / Estates Sales FYI
Good Day BP Family,
I stumbled upon this information regarding a change (at least to the form) the IRS has made effective Nov 2013 regarding estate assets. Its a disclaimer paragraph added to Form 10492 which is a Notice of Federal Taxes Due that's sent out to fiduciaries. However, it make be something to heed for those that invest in properties from estate sales. As always consult with a tax attorney.
"A caution to Persons in Possession of Estate Assets: You may receive this notice of tax due if estate assets or funds were distributed to you prior to the taxes being paid. Estate assets or funds you received before taxes were paid are subject to levy or seizure to pay the unpaid taxes. In such case, you are advised to contact the person whose name appears at the bottom of this form ti dissolve potential enforcement against assets or funds you received from the estate. (IRC 6324(a)(1), 6324(b) and 6901)"
Even if you don't receive the form doesn't mean you're off the hook. The additional due diligence Prior to Closing would be worth it.
Kudos,
Mary