Apparently a client who relied upon an attorney to file an estate tax return won’t avoid a penalty, according to a district court.
An executor hired a lawyer to do the estate’s return, but the attorney had a mental illness and the 706 was filed over three years late. IRS levied late-filing and late-payment penalties on the executor, and the court agreed. The executor remains responsible for ensuring the return is filed.
How could anyone think that waiting three years was acceptable? Also which tax preparer has no backup plan in case of medical emergency?