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Can IRS levy IRA of deceased individual for back taxes owed?
NO! NO! NO! YES! NO!
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What do you do when you have a wage levy from the IRS but your tax refund should cover the amount owed?
Answer It can take up to six weeks for the IRS to post the refund credit and then transfer the credit to the period with the liability. Once this is done the lev…y will be released and any over payments from the levy will be returned. Unless you are working with a local revenue agent you need to call the IRS directly at 800-829-7650 or 800-829-3903 to speed up the process. These are the numbers to IRS collections department. They may ask you to fax a copy of the return to them but in any event they should release the levy immediately. I say should because IRS collections agents are tough and it may take repeated calls or the help of a tax attorney, like myself. For more information visit the following site for four ways to get an IRS wage levy released: http://www.ctctax.com/TS_getIRStaxlevyreleased.asp
If an individual dies owing back taxes to IRS and has no spouse or heirs can they claim the life insurance as payment even if there are beneficiaries listed in the policy?
Answer Presuming the beneficiary is not the decedent or his estate...NO. Passes to the named beneficiary. The rules of decent for the local of the pe…rsons death with determine who the heirs are...and there virtually always are some. Heirs are not responsible for the taxes or other debts of the decedent either. His estate will be. Whatever remains after paying the debts go the heirs.
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.
If this person was a spouse, see this article: http://irsmind.blogspot.com/2008/07/q-filing-return-for-deceased-spouse.html Hope that helps! Andrea http://www.Ta…xFacts4U.com
Yes. The IRS can pretty much garnish anything. So pay up now, or pay up later (with interest).
The heirs are not personally responsible for the debt, though the spouse may be. The estate has to pay off the debts including taxes. If the estate cannot do so, they distribu…te as best they can. If the court approves the distribution, the debts are ended.
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)
Up tot he full amount of any payment you receive from the Gov't. Law now is the Gov't won't pay people (or Cos) who owe them money. Sort of makes sense.
The person(s) who control any property left behind by the deceased. If the taxes exceed the value of the property, then the government will not be able to collect the differ…ence.
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
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.
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.
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.
Joint accounts which are not held as TBE (a manner only available to married couples in certain states) are subject to levy by the IRS and other creditors. The non debtor acco…unt holder must provide the court and levying agency proof of the percentage of funds belonging to them. In most instances the bank account will be "frozen" until the court rules on the motion.
Sure. Death benefits do not enjoy any preference when the beneficiary owes back taxes. They can also garnish your wages and/or Social Security Benefits. You best bet is to… set up a payment plan with then and get the back taxes paid.