[Gretchen18]

My father passed away in 2009, leaving funds in a checking account on which I am Joint Tenant. I paid all of my dad's medical bills and filed his final tax return for 2009. This week he (I) received a notice from the IRS saying he owes money from the 2007 tax year. My question is twofold--must we pay this bill from 2007, and how far into the future might I expect to receive a tax bill from the IRS for my dad's previous year's taxes? Thank you.

[Fr_Chuck]

First of course, if the checking account is a "joint" account that money does not have to go to probate and is yours. So not sure exactly what a joint tenant is,

Is there other property and money ?

You personally are not obligated to pay anything personally, only from money though the estate.

[ebaines]

must we pay this bill from 2007

Yes, but don't use the term "we." Your father's estate owes the taxes, not you. If you are the executor of his estate you are responsible for ensuring that all his debts are taken care of using his assets, before you distribute the estate's assets to the heirs.

and how far into the future might I expect to receive a tax bill from the IRS for my dad's previous year's taxes?

Generally up to three years, unless the government charges that fraud has occurred. Of course if there any open isses, such as this 2007 tax question, it may take the estate several years to ultimately resolve them all with the IRS (my father passed in 2007 and we're stilll dealing with tax issues).

[AtlantaTaxExpert]

I agree with ebaines, but NOT with ert.

The joint checking account is STILL part of your father;s estate if the money in that checking account belonged to your father. Hence, if your father's estate has assets in it, those assets legally MUST be used to pay the taxes from 2007.

However, if the estate is "tapped out" (without any assets on which to draw), then the taxes will NOT need to be paid. However, you must be able to PROVE that the estate has no assets, and the IRS will take a VERY skeptical attitude if you conitnue to use that joint account.

For this reason, you should CEASE using the joint checking and transfer all of your busienss to a separate checkng account under only YOUR name,