A lawyer’s malpractice won’t prevent penalties for a late-filed estate tax return
.
An executor hired an attorney to file an estate’s Form 706. But unbeknownst to her,
the lawyer was battling brain cancer and misled her about filing for an extension.
Well after the filing due date, the executor learned the 706 had not been filed.
When the return was finally filed, IRS levied penalties for late filing and late payment.
Even though the estate won a malpractice suit against the attorney, an appeals court
found the executor responsible for late filing and upheld the fines (Specht, 6th Cir.).