From IPE: Top Ten Practice Tips for Paralegals: Tax and Accounting Issues in Estates

Top Ten Practice Tips for Paralegals: Tax and Accounting Issues in Estates
guest author: Kimberly A. Herrick

Necessary Forms. During the initial consultation, have the personal representative or trustee fill out Form 8821 (Tax Information Authorization) or 2848 (Power of Attorney), depending upon whether the representation will involve representing the estate or trust before the IRS (as opposed to just requesting transcripts).

IRS Transcripts. There are several types of transcripts that may be requested from the IRS: Account Transcripts, which are generally available for all tax years, and show balances due as well as all transactions on an account; Tax Return Transcripts which are generally available for the three prior tax years and show the information which appears on the actual tax return and any adjustments; and Wage and Income Transcripts, which are not considered complete until July following the end of a tax year. A Record of Account is an Account Transcript and a Tax Return Transcript together.

Tax Return Copies and Recreating Prior Year Returns. If prior year tax returns cannot be located, Tax Return transcripts as well as Wage and Income transcripts can provide prior year income and return information. If actual return copies are needed, Form 4506 can be filed at an expense of $50 per return requested.