In almost all cases (the exceptions being things involving life insurance as part of executive savings and compensation plans, and other specialized things)...LIFE INSURANCE proceeds are not taxable to the beneficiary. The IRS agent is wrong. Dispute it. It's a basic thing, and he'll be corrected quickly.
Now understand, (a common error made by many), if the beneficiary was the estate of the deceased - the person themselves - (which generally doesn't have much tax considerations anyway, and you got it through the estate....then YOU weren't the beneficiary of the insurance. By the same token, you weren't paid insurance proceeds, but an inheritance..and that probably isn't entirely taxable at least.
Below from the IRS own guidelines:
4.9 Interest/Dividends/Other Types of Income: Life Insurance & Disability Insurance Proceeds Are proceeds paid under a life insurance contract taxable and do they have to be reported as income? Generally, if you receive the proceeds under a life insurance contract because of the death of the insured person the benefits are not taxable income and do not have to be reported. Any interest you receive would be taxable and would need to be reported just like any other interest received. However, if the policy was transferred to you for valuable consideration, the exclusion for the proceeds is limited to the sum of the consideration you paid, additional premiums you paid, and certain other amounts. There are some exceptions to this rule.
insure claim resived bu party
Yes you do need to make sure that you put the correct amount of postage on the envelope because the IRS will get your mailed income tax return without the correct postage. And also make sure that you have the correct IRS mailing address on the envelope that your return is supposed to be mailed to.
Someone who works in payroll services will usually enter the payroll for a company. This person will usually also be responsible for making sure that taxes and health insurance deductions are correct. This person may also track paid time off.
because its affecting the time period concept and it also violates the GAAP. its affects because they have to record the things in balance sheet or income statement in the correct time period
It depends. Money can't really be paid to a deceased person. It can be paid to their estate or perhaps a co-owner of the shares or a named beneficiary. If the dividends were paid into the estate of the deceased spouse, then the estate should have its own Tax ID number and the income should be reported on the estate's tax return. The payer should be notified of the estate's tax id number and should be asked to reissue the 1099-DIV with the estate's tax id number. If the dividends were paid to someone else, for example a co-owner or beneficiary, the co-owner or beneficiary that received the dividends should report them on their own tax return. If a 1099-DIV was issued with the deceased person's SSN, the real technical answer is that the payer should be asked to reissue the 1099-DIV with the correct tax ID number (either that of the estate or that of the person who was entitled to receive the dividends). In practice, it can be difficult to get this done and this situation is handled more informally. If the amounts are large, the person handling the dividends should issue a new 1099-DIV naming the deceased as the payer and the person (or estate) that received the dividends as the payee. If the amounts are small, everybody who received the money just reports it on their own tax returns. A "large" amount would be one that would require the deceased person to file a tax return if they were still alive.
Perhaps you mean audited as in being audited by the IRS
To check that everything is correct.
received life insurance from my deceased father and it wasn't probated but added to his probate estate for taxes and 9 years later they want me to pay all the taxes. is this correct
Yes, and you want them to because if they are paid out of order then it will be a mess to correct.
Yes. My father is deceased is a polite way to say he is no longer with us.
The beneficiaries on your life insurance policy will receive the life insurance benefits. Please make sure your policy is updated with the correct beneficiaries. Many people forget to update their life insurance policy after divorce, or any other major life event and unfortunately the ex-husband or ex-wife receives the benefits. If all the beneficiaries named on the policy are deceased, then the benefit will go to the insured's estate (which may or may not go to the deceased children. The only way to ensure that the benefits are going to the intended person(s), is to update your insurance policy's beneficiaries.
It is correct to say there is a college of insurance.
That is the correct spelling of the word "taxidermy" (stuffing deceased animals).
No one takes unemployment insurance out of a paycheck. That money for the insurance is paid by the employer, not the employee. The correct amount depends on the size of the company.
Islamic Insurance has its correct name Takaful Insurance and it is yet not started in India.
Usually your health insurance will not cover laser vision surgery. However, you should check with your insurance company, because there may be a few that do cover it.
The correct spelling of the form of insurance is Workers' Compensation.