What would you like to do?
Can IRS levy IRA of deceased individual for back taxes owed?
NO! NO! NO! YES! NO!
Was this answer useful?
Thanks for the feedback!
First, there are many SOLs, both for different taxes and then separate ones for audit, assesment and collection...as you see a progression that added together can be a long ti…me. Depending on certain things, the audit one is normally 3 or 4 years. However, a substantial underpayment, normally more than 25%, can extend that too. And how the days are counted can be a bit strange..but more importantly, that they can be "tolled" (stopped), by many things, most noteably from when the Dept sends a notice, received or not, until you respond for example. So ignoring them while the time goes by doesn't work...the time ain't counting. Payroll tax can be even a bit different, because those are trust funds that you hold for the State...the audit periods are normally more like 2 years to notify of an audit to see the proper things were taxed and paid over. But if it is a matter of your not payng over what you collected, then it is a criminal matter and a whole other set of rules may be invoked. Importantly for many is to understand the SOL only starts to run when a return is filed. If you don't file, you are perpetually open and will never time out
Yes, of course. And they can press criminal charges and give you a new home in jail.
When you are in the refund offset program through the FMS yes this will happen and you will be notified when it does happen.
No, death benefits from a life insurance policy which has a named beneficiary is not subject to attachment by the IRS, state tax officials, judgment creditors, etc.
Yes. The IRS can pretty much garnish anything. So pay up now, or pay up later (with interest).
Yes they can take your check. not only from the IRS but your unemploymen or any other money;s coming to you from any source.
It can go back for forever....if you didn't file a return, the Statute of Limitations never starts and hence, it never ends. That same SOL has many conditions that can make it… go on and on...so if they assessed and you didn't pay, again, ot can go on and on. Generally, and only generally, the IRS will be unyielding on the last 7 years returns - or as far back as they show communication abut, if longer. ------- They came after me for the last 10 years. My CPA says they COULD come after me for prior years but since they have no computer records of anything either way, its unlikely they will. (I am working to resolve it now)
Yes. Do you think the IRS should just presume that everybody who doesn't file doesn't owe any taxes? 26USC6012 requires anyone having more than a certain amount of income …to file a tax return. 26USC7203 makes willful failure to file a return a crime punishable by up to a year in jail and/or a $25,000 fine. Neither of these laws carry any requirement that you owe money. It is extremely rare, but people have been successfully criminally prosecuted for failure to file even though they might owe no money. See Spies v. United States, 317 U.S. 492, 496 (1943); United States v. Wade, 585 F.2d 573, 574 (5th Cir. 1978). Is the typical guy whose only source of income is a W-2 on which he had way too much tax withheld going to get prosecuted? No. Maybe if he gets arrested for something else like drugs, a tax charge might be piled onto his case. Or if he sends threatening letters to the IRS commissioner, they might take revenge. But not typically. People who have never had any income other than a W-2 forget one fact: The IRS does not know whether you owe any money until you file your taxes. A lot of people have income from other sources that does not get reported on a W-2. They owe income tax on that, too. And the IRS does not know that you have dependents or have deductions or whatever unless you file a tax return. They need that statement, sworn under penalty of perjury, of your income, deductions, exemptions, credits, and so on to properly calculate whether you owe taxes. If you don't send it to them, they will make certain worst-case assumptions about you and could even pursue you for taxes you don't owe. And if you don't file, the statute of limitations never starts running. That mean that the IRS can hound you over whether you owed taxes forever. There are also certain elections that need to be made on or before the filing date. Failure to make these elections in a timely manner means you forfeit the opportunity. For example, you can take a return of your current year IRA contribution or recharacterize a contribution up until October 15 of the next year, but only if you file your return (or an extension) on time, even if you don't owe money. Now many people will point to the fact that the civil penalty (as opposed to the rare criminal penalty) for filing late is based on the amount of money you owe. If you don't owe any money, the penalty is $0. (Note: some states impose penalties that may not be based on the amount you owe.) They then extrapolate that to mean you are not required to file and nothing will happen if you don't. These people do not know the big picture. And I don't know how many times I've seen people say "I always get a refund" but this year they don't. And they don't realize it because they haven't filled out their taxes. Or they make a mistake on their taxes and the IRS catches them. They end up paying thousands of dollars in needless failure to file penalties because they didn't file on time.
401k and IRAs are "Assets", the IRS can levy assets and seize them if you do not resolve your tax matters. You can resolve your back taxes through different avenues, negotia…ted payment plans and negotiated tax settlements. Added: If you have unresolved tax debt, IRS is authorized to seize any property and assets, even they are held by someone else. So it means, they can levy your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions. Usually levy is the last tool that IRS would use to get back taxes. So if you get a letter called "Final Notice of Intent to Levy", you should be careful.
Can you get a US passport if you owe the IRS and what if you already have a passport will you be denied to leave or return to the US if you owe the IRS for back taxes?
If you owe back taxes to the IRS and the IRS is currently trying to collect from you, you need to resolve your tax issue. The IRS will not stop you from abtaining a pass…pert or leaving the country unless you are being ivestigated criminally. That would be the work of the CID division of the IRS. They investigate taxpayers who are criminally negligent for defraudung the IRS or criminally negligent on back taxes. Hopefully you are not in this situation. A resolution is an agreement between you and the IRS to pay back the taxes you owe. As long as you have a resolution the IRS will not enforce collections against you. More answers can be found at my blog. wallysworldoftaxes.blogspot.com
Not if your in bankruptcy (where you posted this question), because the law that your using to protect you.....the one that stays any collection actions...means by law the IRS… is prohibited from discussing it with you. If your not in BK and you meet certain criteria....understanding that some belief that you pay too much or don't like how it's spent is not going to be acceptable criteria...there is a system called "offer in compromise" that can be used. The objective of the OIC program is to accept a compromise when it is in the best interests of both the taxpayer and the government and promotes voluntary compliance with all future payment and filing requirements.
In Income Taxes
If this is about the income tax refund offset program through the FMS. You can use the below enclosed information and phone number. The Department of Treasury's Financial Mana…gement Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay any past due child support, Federal agency non tax debts, or state income tax obligations. Go to the IRS gov website and use the search box for Topic 203 - Failure to Pay Child Support, Federal Non Tax and State Income Tax Obligations For additional information, FMS can be reached at 800-304-3107.
Yes, they may take anything worth value, that is in your name. Cars, Houses, Mobile Homes, Campers, Motorcycles nothing is exempt if it comes down to that.
That California is a community property state, so if the account in question is anything other than very specifically maintained as "sole & seperate" property...it's ess…entially all his and yours by law, you've got a problem.
You might be able to get a partial check. It all depends on how much you owe. I called the IRS hotline the other day to ask the same question and I was told they take wh…atever you owe out of that check and then send you the remaining amount.
Yes, if you are in the Tax Refund Offset Program through the Financial Management Services. Through this program, your refund or overpayment may also be reduced by FMS and off…set to pay any past-due child support, Federal agency non-tax debts, or state income tax obligations.