Has anyone out there ever owed the IRS back taxes from an inheritance they recieved and did not know they had?

Question

to pay taxes now I owe like over 25,000 $ what can I do. I mean I will make payments but will it just keep going up until I get it paid???

Answer 1

when you receive an inheritance you are supposed to receive it free and clear of any taxes. If there are any taxes on the estate, that is the responsibility of the estate and the executor of the estate, not you. The only way I can think of that you might owe taxes from an inheritance would be is if you received an ira from someone. Need a bit more info regarding your situation to have a clear picture. Just to let you know, I am a CPA and possibly could assist you in getting this straightened out with the irs.

Answer 2

Have you consulted a tax attorney? That's what I would do as there may be alternatives, such as suing the PR (Personal Representative) who handled the probate of the estate. If the PR didn't pay all the taxes due, creditor liens, etc., then he/she can be held financially responsible.

You must have received a large inheritance if you owe over 25 grand in taxes. Where did the money go?

Here is a Florida bar article dealing with a situation like yours. Taxes vary from state to state, but the federal tax would be the same in your state as it is in Florida.

http://www.floridabar.org/DIVCOM/JN/JNJournal01.nsf/76d28aa8f2ee03e185256aa9005d8d9a/9be2f9d5595706ef85256f3b005b7dfd?OpenDocument

Consult a tax attorney.

Answer 3

If the estate owed taxes (whether the decedent's income taxes or estate taxes on the estate) and the trustee or executor distributed to you, you potentially are a transferee and are liable for the taxes on the estate up to the amount you received. If you received $25,000, that is the maximum limit on your liability. They should be going after the other recipients as well.