I owe IRS back taxes with a payment plan. Can I keep any inherited money?

Question

The money comes from a trust, and I am a trustee. The money is not enough to pay off the debt I owe.

Answer 1

Would think so.Provided you keep up your payments to IRS The govt and you have a deal,that should be it.You should be able to retain the monies from trust

Answer 2

Theoretical answer. No. Practical answer, as long as you are not in default, they will not ask for a new financial statement (form 433A), so they should not know about the inheritance. An inheritance is not income, although post-death earnings on your share of the trust funds would be income, for which you as trustee would have to issue a Schedule k-1, but presumably the amount of post-death income will not be so material as to trigger the need for a new financial statement.

Answer 3

see you later as you're right set up on an IRS Installment contract, and see you later as you nevertheless make funds and do not default on the contract, then you are able to proceed on that plan in spite of the different money think about come to you. for sure, in case you will pay the tax debt off previously, you will pay a lot less pastime to the IRS.

Answer 4

Yes, you can keep this money and maintain your payment plan with the IRS.

Answer 5

As long as you have an installment agreement and keep up the payments, you're golden.

Answer 6

i think they take half or they budget out the money out to your needs like if u have other bills to pay they budget it out so that you will also be able to them bills but they will get some of that money i no that much

Answer 7

sounds like you need a tax attorney,mate