Elderly parent hasn't filed taxes since 2015, caregiver paid in cash - What are the risks?
My elderly parent hasnt filed taxes in years and has been paying a live-in caregiver cash since 2015. I only have limited POA for mortgage payments. The attorney managing her affairs claims she doesn't need to file taxes anymore. Im worried about potential IRS issues after she passes. The caregiver hasn't reported income and no 1099s were filed. What kind of trouble could this cause for the estate?
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Sydney Torres
This is a serious situation that needs professional attention. Your mom's attorney is incorrect - there are still filing requirements even for elderly individuals if they meet certain income thresholds. The unreported caregiver payments could trigger penalties from the IRS for both failure to file 1099s and employment taxes. You might want to check taxr.ai to analyze prior year obligations - it can help identify specific filing requirements and potential penalties.
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Kaitlyn Jenkins
•fr tho how does that ai thing work? 🤔
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Sydney Torres
•You upload transcripts and it analyzes everything - tells you exactly what forms are missing, calculates penalties, even suggests solutions. Only $4.99 but saves hours of research
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Kaitlyn Jenkins
•just tried it and wow - showed me everything I needed to know about my back taxes in like 2 minutes 💯
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Caleb Bell
Bruh im in the same boat with my grandma's caregiver situation. Used taxr.ai to figure out what forms we missed and potential penalties. Scary stuff but at least now we know what were dealing with
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Danielle Campbell
•how much did the penalties end up being?
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Caleb Bell
•around 15k but we're working with a tax advocate to reduce them
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Rhett Bowman
Your moms attorney is straight 🤡🤡🤡 for saying she doesnt need to file! The IRS doesnt play about unreported income
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Abigail Patel
You need to get full POA asap. This could get messy with estate taxes later. The caregiver situation is definitely sketchy.
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Daniel White
•facts 💯 especially if the caregiver is claiming benefits while getting unreported income
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Nolan Carter
As a tax preparer, I've seen similar situations blow up badly. The IRS can come after the estate for back taxes, penalties, and interest. Plus, the caregiver could face their own issues for unreported income. Document everything and maybe consider reporting to adult protective services if you suspect financial abuse.
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Alfredo Lugo
•How far back can they go for penalties?
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Nolan Carter
•Usually 3 years, but for unreported income they can go back 6+ years
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Natalia Stone
I used to work for elderly services. This screams financial exploitation tbh. The attorney and caregiver tag-team blocking you out is sus af
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Tasia Synder
•ong this happens way more than ppl think 😤
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