POA depleted Dad's IRA, now IRS sending failure to file letters. Help!

We don't know if sister stole the money. Maybe dad knew what was going on and he spent the money.

Was it required withdrawals? Some retirement accounts actually penalize you if you don't take money at certain intervals.

I would get a CPA involved to know exactly what the situation is before you get law enforcement involved. False allegations ruin lives and we should be very sure before we make any allegations.

A tax lawyer. This is not something you can figure out yourself. This is grand theft and Sister needs to be prosecuted.

Kellywb, I would ask if they have an affiliated CPA to audit the account. A good general counsel or an elder attorney. I would make sure it’s an attorney who is aggressive in pursuing the POA and the money.

My suggestion is to get a CPA to review all his taxes filed in 2011 -2013. If dad doesn’t have them, then he will have to request them from IRS. There’s a IRS DPOA authorization form that has to accompany the request. A good CPA should know how to do this. Those missing years will need to be filed. It will be a beast to do but use old filings for template. You want to clearly speak with the CPA as to doing the 1040 filing so that hopefully also a IRS 982 can be done so it shows insolvency and that $9600 bill zeros out.

As an aside on the 1040/982, for folks that go onto Medicaid in a NH, they end up defaulting on stuff (credit cards, mortgage, car notes) as Medicaid requires a copay of their monthly income. So they have no $ to pay anymore. They get 1099-C for the amount of debt cancelled. They could get several 1099-Cs. And the amount is taxable income. Yeah, phantom income but taxable! The CPA does the 982 to show insolvency and the taxes on the phantom income is zero or become very very reduced. It’s not ever a DIY, or a Turbo Tax project imo.

The non filing started in 2014, right? So you want a few years before to see what his pattern was. You have to deal with IRS for him. They are a supercreditor and actually can attach a portion of his SS income. Really you don’t want to have that ever happen.

If private pay care has been happening and getting paid for, I can see the $ going for it. Hawaii has high cost of care, cost of living. Private pay in home care could run 100k a year in the mainland US. So over 100k in home for Hawaii cpuld make sense. Or was $ squandered?

Is DPOA your sibling? Or another relation? Not a relative?
Why are they dpoa instead of you, his daughter?
Would your dad change POA to you?
Is he kinda competent and cognitive to do so?
If not, can you front $ to get an atty to seek guardianship over him?

You need a lawyer to verify thefts and to pursue legal remedies. Was this a family member? Good luck at getting to the bottom of this theft.