Why did my mother not file her taxes?

My mother is in asst.living due to dementia. I have gotten power of attorney; however, recently received letter from IRS stating she owes $75,000 in federal taxes for 2002 thru 2006. (She receives SS and a couple other checks totalling about $4000/month).

Can a person not file taxes due to dementia?

A large portion of the amounts the IRS is claiming that your mother owes likely is from penalties. The IRS has the authority to waive some or all of the penalties if the taxpayer has valid reasons why the returns were not filed. Having dementia likely is a valid reason why a taxpayer did not timely file tax returns.

What was the 2015 tax bill for my mom?

I knew the history of these stocks and could see the huge gains on the brokerage statements. The 2015 tax bill was frightening. It was painful in 2016 to have to write large quarterly payments to the Internal Revenue Service (IRS) and state department of revenue while Mom’s assets were diminishing and her health care costs were rising.

How much money does my mother owe in taxes?

I have gotten power of attorney; however, recently received letter from IRS stating she owes $75,000 in federal taxes for 2002 thru 2006. (She receives SS and a couple other checks totalling about $4000/month).

What to do if you haven’t filed your tax return?

If you haven’t filed your federal income tax return for this year or for previous years, you should file your return as soon as possible regardless of your reason for not filing the required return. If you need help, check our website. We have tools and resources available, such as the Interactive Tax Assistant (ITA) and FAQs.

What happens if you don’t file your taxes by the due date?

If your return wasn’t filed by the due date (including extensions of time to file): You may be subject to the failure-to-file penalty, unless you have reasonable cause for your failure to file timely.