We continue to have a lot of new and existing clients whose loved ones have died with real property interests in other state. They are often surprised when we advise them that in order to transfer title to those interests, they will need to file and go through that state's probate process. Typical out of state real property interests include vacation homes, beach condos, rental homes, ranches, farms, and mineral interests.
The IRS requires that a person or entity possessing an IRS employer identification number ("EIN") has 60 days in which to report a change in its "responsible party" designation using an IRS Form 8822-B. Further, beginning May 13, 2019, the "responsible party" can no longer be an entity but must be an individual. Currently, the IRS is not imposing penalties for failure to notify it of this change, but the IRS has cautioned that an applicant may not receive a notice of deficiency or notice of demand for tax if it does not have a current "responsible party" designation on file.