I owe IRS of Calif.$60,000 in c.g. tax, would my ss retairment be affected.? How to get around it, if it doe?

Question

My tax return in 2004 shows I owe about $120,000 in capital gain tax, I have paid half of that amount, and have no money to pay the rest, would this unpaid amount affect my social security retairment.

Answer 1

Any income you have, including Social Security retirement, is subject to seizure in some circumstances. This seems like exactly that kind of circumstance. Get legal advice--this forum is no place for questions of this seriousness.

Answer 2

You say "IRS of Calif" - which is it, IRS (federal taxes) or Calif (state taxes)?

I'm assuming federal from the rest of your question. To owe that much in capital gains taxes, you'd have had to have gains of $800,000 if they were all long term - about $343,000 in gains even if they all were short term. You're probably going to have a hard time convincing the IRS that if you got that much from the sales (or probably more, if you paid anything at all for the items you sold) that you don't have enough money to pay the taxes on it.

And yes, they can levy your social security benefits for unpaid taxes.

Answer 3

Call the IRS & FTB to get this cleared up ASAP.

I assume that when you say "IRS of Calif." you really mean the Franchise Tax Board.

Answer 4

Don't put it off, call them and and give an offer in compromise, that means you can pay a lump sum for pennies on the dollar, or ask them for a payment schedule, where you make monthly payments. it wont affect your SS.