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  1. #1
    Join Date
    Apr 2009
    Posts
    2

    Default Estate Can't Pay Estimated 1040 Tax

    My question involves estate proceedings in the state of: IL

    The administrator filed out extension to file 1040 (Indiv income tax) for the decedent. Tax may be due. It would be advisable to pay estimated tax to avoid future fees, but currently the estate has no funds to pay the tax. It is not clear if these funds will ever materialize.

    Should the tax be A) paid directly from an account of a willing borrower (in exchange for note that the loan will be paid off if the estate gets the funds). B) pay the tax as described in A, but channell the funds through the estate account. C) not pay the tax until more money comes in and let the gov be one of the debtors.

    If no other money ever comes into the estate, the estate will be insolvent.
    If money comes in, will the person who loaned the money to the estate for the purpose of paying taxes will be considered class 3 or class 7 debtor?

    Thank you!

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Estate Can't Pay Estimated 1040 Tax

    Why would you put your own money into an estate that may not be able to pay you back?

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