So, death and taxes.

Again a district court has held that filing a frivolous tax return penalty meets the Supreme Court’s test of being a civil penalty and therefore it survives the taxpayer’s death.  This case turned out ugly and the deceased taxpayer’s estate was tapped for additional penalties.  Word of caution – don’t file frivolous tax returns or take that type of position.

If you die your spouse or beneficiaries may need to use your assets to satisfy the U. S. Government.  If you suspect your spouse may have taken a frivolous tax position, get an opinion from a tax professional.  Courts are full of cases and I suspect more people will be caught.