anybody work for IRS?
- Thread starter jenbengen
- Start date
R
RadioPatrol
Guest
Yeah, my next question is "is debt inherited".My parents will pass away one day. What happens to all of their debt? It surely doesn't go to their kids, does it? I can't imagine that it could, but it DID cross my mind.
Comes out of the estate ....... unless there is insurance you get the house and the Mortgage .........
R
RadioPatrol
Guest
not much ....... jail would be a stupid thing, he cannot own that much ... my tax money going to feed an close a tax dead beat ....
since you have to give your SSN every place you go they will probably order some sort of garnishment that will follow he where ever he goes
just my .02 Cents
beachbunny
SoMd Realtor
I would suggest he get a good tax account to back file all of his past 3 years taxes. If the IRS estimates the taxes they are most always higher and do not include any of the actual business deductions that he may be able to take. Then, the accountant or tax lawyer can negotiate a payment schedule. He should get right on top of it as that is something not to mess around with and it only gets worse the longer you wait.
H
HouseCat
Guest
This happened to my father as well. Only, he filed his tax returns, but the accountant went to jail for corrupt business practices. My Dad ended up owing 100k as well. After making 3k payments every month the IRS agent/consultant told my father that he would NEVER be able to pay off 100k with the interest it accrued on what he made and value of his estate. He was directed by the consultant to file a special IRS bankruptcy claim. My father's credit is jacked for life, but his debt is gone.
Now this was back in 1988. With the new bankruptcy laws, I have no idea what its like now, but I would get with the IRS and check to see what the qualifications for this claim are, and if it still exists.
Check out this IRS link. There's more info there that might help.
Publication 908 (7/1996), Bankruptcy Tax Guide
Scroll down to Debt Cancellation. I have not read it, but it looks like somewhere to start. Bankruptcy sucks, but if there's no way your Pop can pay off 100k..it might be the only option.
Now this was back in 1988. With the new bankruptcy laws, I have no idea what its like now, but I would get with the IRS and check to see what the qualifications for this claim are, and if it still exists.
Check out this IRS link. There's more info there that might help.
Publication 908 (7/1996), Bankruptcy Tax Guide
Scroll down to Debt Cancellation. I have not read it, but it looks like somewhere to start. Bankruptcy sucks, but if there's no way your Pop can pay off 100k..it might be the only option.
""my next question is "is debt inherited". My parents will pass away one day. What happens to all of their debt? It surely doesn't go to their kids, does it? I can't imagine that it could, but it DID cross my mind.""
Debt cannot be passed on to kids simply because of relation. If you try to claim an inheritance though, things can get complicated.
When your parents die, their estate (home, savings, retirement) will be used to cover their debt. Any excess is a loss whatever company it is owed to. If you try to claim your parents property as an inheritance, you may have to pay some or all or their debt to get it though.
Debt cannot be passed on to kids simply because of relation. If you try to claim an inheritance though, things can get complicated.
When your parents die, their estate (home, savings, retirement) will be used to cover their debt. Any excess is a loss whatever company it is owed to. If you try to claim your parents property as an inheritance, you may have to pay some or all or their debt to get it though.
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Old Timer
New Member
I worked with the IRS agent as power of attorney for my sister who owed a great deal in taxes. The agent was very forthcoming with information, etc. and worked with me. He realized she had no assets, other than her home, so we voluntarily placed a lien on the real property and the IRS waived collection efforts. Any liens placed against the real property only last for 10 years.
