Yes it was an IRA but i still had no idea i would be when I talked to the people they told me no taxes would?

Question

be due so I took them at their word now the IRS is litterally knocking on my door. What can I do?

Answer 1

Yes, you owe a penalty on the withdrawl if it was a traditional IRA and taxes on the income. You should call the IRS and schedule a payment plan for those owed taxes.

See the linke below for instructions from the IRS website.

Answer 2

An inherited retirement account such as an IRA that has never been taxed is taxed to the beneficiary when the money is distributed.

When you received the IRA, you received a tax document (a 1099R) showing that the distribution was subject to tax.

You can take the amount owed that the IRS has computed and start paying that off, or you can have a tax preparer review the year of distribution to see if anything can be done to lower the tax owed.

Either way, set up a payment schedule to pay off those taxes. Any refunds that you may have coming in the future will be taken to pay down the taxes owed.

Answer 3

If you withdrew money from a traditional IRA, then income tax is due at whatever your rate is.

If you were under 59-1/2 when you took it out, you owe an additional 10% penalty.

If someone told you that you wouldn't owe taxes on it, they were wrong and there's really nothing you can do - you relied on bad information.