Deceased client - S corp owner and FinCEN filing

4 replies
48 views

Good day!

A deceased client (died April 2024) was the sole owner of his S corp. His surviving spouse asked me to file the S corp paperwork however she isn't listed on the legal paperwork. Should I file the FinCEN BOI document as if he is alive? Not sure how to proceed with this.

Thanks!

ProSeries Basic

This topic has been closed for replies.

rbynakerAnswer

Level 13

I would kick this to the estate attorney since there are probably legal hoops to jump through. My guess: the S Corp shares need to be transferred by probate, then the "new owners" (maybe wife or maybe wife and other heirs) have a shareholder meeting to elect a board or appoint an officer who can then issue a corporate resolution to change the signer on the bank account. Also, likely a different path if this is an LLC electing to be taxed as an S Corp instead of an actual S Corp. But these are all lawyer things, not accountant things.

For BOI, I remember seeing an announcement that changes have to be reported within 30 days of the settlement of the deceased's estate but I don't remember those rules contemplating the situation before the initial report is filed (another reason to get a legal opinion).

sjrcpa

Level 15

Who became the owner after his death?

Spouse? estate?

The more I know the more I don’t know.

J

JML222Author

Level 5

Thanks for the reply.

The wife is trying to gain access to the business bank account. Other than that, everything is held jointly. Except the S corp which has no mention of her other than profits / K-1 included on a joint return.

I think I'll sit down with her and have her fill out the online docs.

Thanks!

rbynakerAnswer

Level 13

I would kick this to the estate attorney since there are probably legal hoops to jump through. My guess: the S Corp shares need to be transferred by probate, then the "new owners" (maybe wife or maybe wife and other heirs) have a shareholder meeting to elect a board or appoint an officer who can then issue a corporate resolution to change the signer on the bank account. Also, likely a different path if this is an LLC electing to be taxed as an S Corp instead of an actual S Corp. But these are all lawyer things, not accountant things.

For BOI, I remember seeing an announcement that changes have to be reported within 30 days of the settlement of the deceased's estate but I don't remember those rules contemplating the situation before the initial report is filed (another reason to get a legal opinion).

Sign up

Login with SSO

Let's get you signed in

Login with SSO