I am repaying IRS on an installment agreement now. I may inherit some money from a non-relative, via her will, .....would IRS try to also take money from that to pay off the debt on the old taxes?
2007-07-13 05:21:58 · 4 answers · asked by ras d 1 in Business & Finance ➔ Taxes ➔ United States
If you have an installment agreement in place and have been making the payments on the agreed to schedule the IRS will not attempt to take any additional funds that you may acquire regardless of the source. If you miss a payment the agreement is void and they can take anything not protected by statute that you have.
2007-07-13 05:57:51 · answer #1 · answered by ? 6 · 5⤊ 0⤋
If you inherit money that was already taxed, you will not pay income tax on that money. If you inherited, for example, a tax-deferred IRA, then you will owe income tax on that money.
At any rate, if you come into some money, the IRS could try to seize it for back taxes. If you keep up with your installment agreement however, you should be OK.
If you inherit so much that you are able to pay back your taxes at once, of course you will save on the penalties and interest, which are substantial.
2007-07-13 05:28:04 · answer #2 · answered by ninasgramma 7 · 3⤊ 0⤋
If you have an installment payment plan set up with them, I don't believe they could.
2007-07-13 05:29:21 · answer #3 · answered by ghouly05 7 · 0⤊ 2⤋
You could avoid paying taxes on the inheritance by giving it as a gift to your wife and taking a one-time tax writeoff on it. Talk to a lawyer to find out what the maximum dollar amount that gift can be.
2007-07-13 05:25:33 · answer #4 · answered by Anonymous · 0⤊ 11⤋