Friends feel this guy took advantage of dying friend and gave bad advice on insurance and had her write him checks while she was not thinking clearly. Can he be punished by IRS for taking money from her (we have cancelled checks).
2007-12-18 03:38:26 · 9 answers · asked by fsnail 3 in Business & Finance ➔ Taxes ➔ United States
Yes, I agree with countryg. I would call the states attorney's office and report them. There might be a senior citizen's agency that might assist you. The local police might be able to direct you also.
All income has to be reported. However, he could claim that $10,000. was a gift which is allowable.
2007-12-18 03:49:50 · answer #1 · answered by Rockyrocks 2 · 1⤊ 2⤋
This is not an IRS matter, unless the payments were remuneration for services and he did not report them on his tax return. Gifts are not taxable, so again the IRS would have no reason to be involved if they were gifts.
If you feel the person took advantage of an incompetent person, it may rise to the level of fraud. That would be a criminal offense, so you should start with your local police department.
2007-12-18 13:55:12 · answer #2 · answered by taxreff 7 · 0⤊ 0⤋
No, this is either a gift or an inheritance neither of which is taxable to the person receiving the money.
2007-12-18 12:11:15 · answer #3 · answered by waggy_33 6 · 2⤊ 0⤋
if dying friend did not have someone as power of attorney to protect them - nothing much you can probably do - might even be perceived as gifts to recipient and estate would owe gift taxes
2007-12-18 14:20:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Unless you can prove that he took advantage of your friend (almost impossible), the only thing the IRS can bust him for is not reporting income (Tax Evasion) and only that if he didn't report the income.
2007-12-18 11:44:06 · answer #5 · answered by Joe 2 · 1⤊ 3⤋
I would call the authorities. It may not have been legal.
Even if legal this person should have declared this in their tax return.
2007-12-18 11:43:54 · answer #6 · answered by countryguyhfc 5 · 1⤊ 3⤋
Yes, "all" income must be declared
2007-12-18 11:45:59 · answer #7 · answered by Jan Luv 7 · 1⤊ 2⤋
Dont report just threaten so you can get your hands on some of that money!
2007-12-18 11:45:49 · answer #8 · answered by flower child 2 · 0⤊ 5⤋
yes call and may be youll get some $ threat him
2007-12-18 11:41:50 · answer #9 · answered by J 2 · 0⤊ 6⤋