How to Find Out if a Parent With Dementia Owes Taxes

Tax season can be even more stressful than usual if you have parents or loved ones with dementia. If you have to help them prepare a return or file one for them, you might be wondering whether they have forgotten to file returns in the past or have unpaid tax bills. This question might also be plaguing you if a parent with dementia recently passed away, and you have to settle his or her estate.

‍The best way to find out whether loved ones with dementia owe taxes is to check with the IRS. Be prepared, though, to fill out several forms to get the information you need.

For parents with dementia who are living

If you need to find out if a parent you’re caring for has filed tax returns,  use Form 4506-T to request free copies of tax transcripts. However, you will need to use another  form to establish that you are authorized to manage your parent’s affairs. 

If you are your parent’s court-appointed conservator, you can use Form 56 (on line 4) to notify the IRS that you are authorized to access Form 4506-T. 

If you are your parent’s agent under power of attorney, you will need to fill out Form 2848. On line 5, indicate that you are authorized to access Form 4506-T. Include Form 2848 and a copy of the document naming you power of attorney along with Form 4506-T. For more help filling out Form 2848, follow these instructions.

When filling out Form 4506-T, request (on line 6) transcripts for Form 1040 to find out if your parent filed individual tax returns in recent years. Check the box on line 6(c) to receive a Record of Account, which will include a tax return transcript and account transcript that shows payments your parent made and any balances due. On line 9, you can request transcripts for the current tax filing year and three prior years.

To have the transcripts sent to you rather than the address the IRS has on file for you parent, you’ll need to list your address on line 3 of Form 4506-T and your parent's address on line 4. You’ll need to submit a Form 8822, Change of Address (and sign it as your parent's representative) if those two addresses are different. 

For more details about filling out Form 4506-T and for information about where to mail the form, be sure to read the instructions included with the form.

For parents who have passed away

First, you must be able to show proof that you are authorized to manage your parent's affairs and estate. So you’ll need a document issued by the probate court (called Letters of Testamentary, Letters of Administration or Letters of Representation) that shows that you have been appointed your parent's executor, estate administrator or personal representative.

Along with the Letters of Testamentary, you also must provide the following to the IRS:

• Your parent's full name, last address and Social Security number;
• A copy of your parent’s death certificate; and
• A completed Form 56, Notice Concerning Fiduciary Relationship, which shows what authority you have to act on your parent’s behalf.

Then, you can request free copies of your parent's tax transcript using Form 4506-T. Request transcripts for Form 1040 on line 6, and check the box on line 6(c) to receive a Record of Account to receive a tax return transcript and details of payments that were made and any balances due. On line 9, you can request transcripts for the current tax filing year and three prior years.

To have the transcripts sent to you, list your address on line 3 of Form 4506-T and your parent's address on line 4. Submit a Form 8822, Change of Address (and sign it as your parent's representative) if the addresses are different. 

If you have trouble filling out these forms or getting the documents you request, contact your local IRS office to schedule an appointment for in-person help.

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