I recently got both Durable and Medical POA for my mother who is declining hapidly and seems to have given up on life after a broken hip and stroke. I learned that she is 5 years behind in taxes and so is her husband. Neither are able to deal with their taxes and I'm having a time getting everything to the CPA. We have 2004 done, 2005 is almost finished, but we still have the other years to go. She has all of the tax debt for she has the most money which she's always kept seperate from his and I have the right of survivorship to as well as co-ownership within the last few years to.
Carol
I suggest getting a copy of the IRS Publication 559 ("Survivors, Executors, and Administrators"), which has a lot of helpful instructions for your situation. You can find it online here: http://www.irs.gov/pub/irs-pdf/p559.pdf
Try to get as much done as you can before you lose POA and get some help from someone who is knowledgeable in Probate Law for your state. My personal experience was that dealing with the IRS and with Probate court is much more difficult as Executor vs being able to resolve problems when you have Durable POA with co-ownership (Is this similiar to a Living Trust?) The IRS moves to the front of the line of predators if your mother dies owing them back taxes which in turn can stretch out Probate for years.
They have always filed jointly and this has been tough because my step-brother would rather be in charge or go off and play somewhere than work and be helpful. My step-brother has limited POA over his dad for he runs his business for him and pays the monthly household bills. He finally got the last needed item for 2005 to the CPA today. He also got the needed information we need to complete getting 2006 ready. My hope is to hear from the CPA that I can drive up their in the next day or two to sign, pay, and file this Federal and State Tax return for 2005. I've already organized all of the paper work that I'm to give the CPA for 2006, 2007, and 2008.
The only thing left for 2006 is to go over the various bank account checks to make a list of the itemized expenses that qualify as deductions. Last time, it took me about 5 hours to do that with my step-brother helping with reading his dad's handwriting.
We have discovered that their financial records are spread from the bedroom to the living room in various drawers, cabinets, etc. without any organization to them at all. I now have each year in a container with what goes to the CPA in smaller container inside. As I finish each year, I am placing that whole year in a big box, putting a label on it and placing it in the attic. My plan to is see all of this is done by early January and have 2009 filed by February of 2010.
I must deal with her car soon for it's only in her name. My step-dad's name does not appear on the title. He does not own a car and he does not drive. His helper drives my mother's car every day to take my step-dad to see my mother in the nursing home. Honestly, I could use that car. I'm sure if one of my friends were in my shoes with POA, that car would not be used by my step-dad anymore. I really must use my POA to add my name to the title or once she is dead that car is not longer drivable legally.