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Cassius45 Asked April 2019

POA Agent Liability; Can IRS make me financially liable for his failure to submit taxes?

My brother has dementia and MS and is no longer able to care for himself. I had to place him in a supportive care facility. I became his POA for financial and health. While going through his old financial records (what I could find) and applying for Medicaid I learned he had not submitted Federal, State taxes for three years and two years since I became POA. He has no other debts but only maintains $90 per month. I am 74. Can IRS make me financially liable for his failure to submit taxes?

freqflyer Apr 2019
Caccius, it could be that your brother didn't submit IRS income taxes because his income was below the amount set by the IRS. I don't know if any forms were needed to express that to the IRS and to the State [if his State requires yearly tax reporting]. I would make an appointment with an income tax preparer to clarify.

I would think if the IRS felt that paperwork was needed, your brother would have received a letter from the government. Of course, the IRS isn't very swift on sending such notices. I recently got a letter regarding my late Dad's 2017 return :P

JoAnn29 Apr 2019
What do you mean maintains $90 a month? Is this his Personal Needs Acct? If he receives SS this can't be the amount he gets. How old is he?

My mother only received 1500 in SS and a 200 pension. SS is not taxed under a certain amount of income. I THINK its under 30k. So brother may not have had to file income taxes because his income was mostly SS.

Look for his SS 1099s for those years he didn't pay. And any other ones like bank interest. My Mom and MIL received a letter stating they no longer had to pay income taxes because of income.

I don't think you can be held responsible. And there was a former IRS agent on this forum who said they won't go after the person owing if they have no assets, which a person on Medicaid does not have. Pretty sure they won't go after you as a POA either. I would check with a tax accountant or a good tax preparer.

Just curious, is brothers Dementia more recent. Was he capable of doing his taxes the last 3 years?

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