My mother is over 65 and owes the IRS back taxes. She makes under $26,000/yr. We have hired a law firm to negotiate with the IRS as she does not have the means to pay.She recently heard of a person (a friend of a friend) that found out after some research,that they are not liable because they are over 65 and make under either 24k or 26k per year. However, my mom's attorney's (who only deal with the IRS) neglected to mention this, so I'm not sure if it's true. Possibly the law firm knows this and wants to collect fees anyway? Any info would really be appreciated.
2007-09-13 09:11:39 · 13 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Whoever that friend is, is no friend. They have totally incorrect information about being over 65 and making under either 24k or 26k and having no tax liability. What your mother could have as income and pay no tax, is the following. Single person - Standard deduction of $5,350, age 65 or older - additional deduction - $1,300, Personal exemption - $3,400. Total income she could earn and not pay federal taxes = $10,050. I believe that the amount the friend is referring to deals with taxability of social security benefits, not taxable income.
2007-09-13 09:35:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Whoever told you that anyone over 65 who makes less than so much per year is not liable was probably talking about the criteria for having to file an income tax return, which has nothing to do with owing back taxes.
I was a volunteer for the IRS for six years, doing income tax returns for the low income and elderly through the VITA program. I agree with the previous answerer who said to get rid of the lawyer and talk to the IRS directly. They will work with you.
2007-09-13 09:34:08 · answer #2 · answered by Sunshine 3 · 0⤊ 0⤋
Perhaps someone is confusing this with the "Do You Have to File" limits shown on page 12 of the 2006 1040 Instructions.
Even so, those numbers are much lower ($9700 for a Single person 65 or over).
Somebody needs to negotiate with the IRS. If he law firm is a reputable local one, they will probably do a good job. If they are someone who advertises on TV and claims to be able to make unbelievable things happen, watch out.
2007-09-13 09:42:56 · answer #3 · answered by r_kav 4 · 0⤊ 0⤋
The person's "research" is incorrect - being 65, or having income below $26K, does not get a person off the hook for paying taxes that they owe. No, the law firm is NOT just trying to get her money. They didn't mention this because it's just not true.
The only thing I can think of that the person is talking about is that if you are on social security and your total OTHER income that ss is $25K or less, you don't pay tax on your social security. You would pay on your other income though.
2007-09-13 15:43:04 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
Q. Are you Liable for back taxes with the IRS if you are over 65 and make under $26k a year?
A. Yes
2007-09-13 13:16:52 · answer #5 · answered by StephenWeinstein 7 · 0⤊ 0⤋
There are no such laws.
I wouldnt bother with the law firm, get rid of them immediately. The IRS isnt interested in putting little old ladies out in the street. If you and she go to their offices and talk to them, they may work out a solution for you. Make sure you make them believe you want to do the right thing, that you are scared to death, and totally broke. They will actually cut you a better deal than the atty.
2007-09-13 09:19:25 · answer #6 · answered by patrick 6 · 0⤊ 0⤋
Your tax preparer in simple terms takes the information you supply and inputs it into the equations. particular, they do advise to jot down this off or do not try this, yet so a great way as them being to blame to your audit.......NO. IRS seems for particular issues and you prob had some thing that in simple terms did not seem perfect. in case you do each little thing by capacity of the books and you have a reliable accountant, you will finally end up in simple terms large. extra of a hassle than something. My accountant provides us suggestion on some issues.........while you're a employer proprietor you have to be the maximum paid guy or woman or it seems suspicious. in case you commute or food fee is in simple terms too extreme for the dimensions of employer you're, which would be catching the IRS's eyes......or probably the mileage. reliable luck
2016-10-10 12:39:58 · answer #7 · answered by ? 4 · 0⤊ 0⤋
If your mother owes back taxes, her age is irrelevant. If she is unable to pay that is a different issue. If she has no assets and her income is low, based on IRS allowable expense standards, her account might be classified as currently not collectible or, if she was willing to offer an amount that represents the reasonable collection potential of the account, it could be settled for that lower amount. Email me through my profile if you want more details.
2007-09-13 10:02:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋
First, is there any doubt as to whether or not she owes the taxes?
The IRS will consider what they call an "offer in compromise". Form 656 has the details.
2007-09-13 09:29:48 · answer #9 · answered by Anonymous · 0⤊ 0⤋
No such law exists.
A) How much are the back taxes?
B) What does she own? (Personal property, house, retirement accounts)
If A > B, then she may qualify for an "Offer In Compromise" which is probably what the attorney is working on.
2007-09-13 09:40:31 · answer #10 · answered by Wayne Z 7 · 0⤊ 0⤋