Does the IRS waive penalties for the elderly that have forgotten to file their taxes?

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My mother was recently diagnosed with dementia. When we contacted her accountant in April to have him file for an extension for 2010, we found that she had never filed her 2009 taxes. She requested the extension in April 2009, but never sent the information back to him to prepare the taxes. Is there some form that we can file with the IRS for a waiver of these penalties and interest?

Answers 1 to 9 of 9
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I expect that you'd need documentation from a doctor, but hopefully this would be the case. The taxes would be owed, but because of a medical situation, they are late. Good luck and please check back so we know if you got help from the IRS - and some compassion.
Carol
Expert Answer
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Yes, the IRS may waive a penalty on a failure to file if you can show reasonable cause for not filing on time and it is not due to willful neglect. You may wish to set up a payment plan for your past taxes if finances are an issue. For the future, have an accountant set up estimated tax payments so there is no problem going forward.

You can contact the IRS to find out exactly what paperwork may need to be filed or review their website (which is actually very easy to understand) at www.irs.gov. The topic is known as "Frequently Asked Questions for Past Due Return Filers." You can also contact your local IRS office at 1-800-829-1040.
The executor and a CPA need to work on this. The executor is the only one with the authority to deal with this.
Call them. I have found them to be quite helpful.
Thanks I will give them a call. Her neurologist has written a letter indicating that her condition would have impacted her financial dealings between 2009 to 2011.
My step-dad and mother hid the fact of their unpaid taxes from us until 2009. My aunt knew taxes had not been filed and paid since 2003, but did not see it as her place to tell me mom's POA. gggggggggrrrrrrrrrrrrrr relatives! It was quite a mess cleaning all of this up which included firing the so called friend of the family CPA who also knew these taxes were not filed. We did not get a break on penalties or interest. I hope you get some, but don't hold your breath.
Where can I find someone that helps Veterans that hadn't filed income tax for the years 2004, 2005 and 2007 for free in or near Hyde Park, NY? All he needs to do is file these years and see what the end result is and probably file a hardship to pay off whatever the amount is after filing these years.
I really don't think you will find someone who will do back tax preparations for free. I'm sorry that you have such a mess on your hands to clean up. The IRS will want its money.
I have written about my mother before. A few weeks before her death, my daughter and I at our respective addresses received correspondence from the IRS. It appears that she failed to file taxes for 2008 to date (seven years). She was given 30 days to respond to the letter of inquiry; by the time this interval expired, she had passed away. Dementia was listed as one of the causes of her death along with COPD and pneumonia. She had a formal diagnosis of Alzheimer's in March 2012, but had been afflicted for some time before that obviously (if not, why would there have been an evaluation to begin with. I do not know how to proceed. I sent the man who'd written me a letter a copy of her death certificate and asked him what I can do. Any thoughts on what I will have to do, if anything. I never thought to consider her tax situation during the years she was in obvious decline and before it was obvious, I assumed she was handling the tax situation. I don't even know if she was filing taxes in the UK, if she ever declared UK income on her US tax returns. I am not sure I am legally able to act for her at this late date as while I know she HAS a will, I am not the executor. I have no idea of her UK income or assets except to suspect that the amounts are not great. Problem, her probable executor is her long-time companion who is himself 93 next month and I have diminished a decline in HIS abilities, Furthermore, during her lifetime, I do not believe that she ever gave him a power of attorney over her finances.

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