Greetings,
A US partnership has a nonresident alien partner. The partner passes away, while his capital account is valued at 500K. The estate of the deceased partner will, unfortunately, be liable for a significant amount in the estate tax (500K total-60K exclusion=440K taxable estate). Is there a duty for a US partnership to make sure that estate tax was paid before returning capital to the heirs? Can the IRS go after the partnership if the tax was not paid and money returned to the estate? Thank you for your thoughts.
A US partnership has a nonresident alien partner. The partner passes away, while his capital account is valued at 500K. The estate of the deceased partner will, unfortunately, be liable for a significant amount in the estate tax (500K total-60K exclusion=440K taxable estate). Is there a duty for a US partnership to make sure that estate tax was paid before returning capital to the heirs? Can the IRS go after the partnership if the tax was not paid and money returned to the estate? Thank you for your thoughts.