| Saying goodbye...What happens when a loved one | | | | being nothing of value to satisfy the creditors or the |
| passes away and leaves an IRS debt behind? Does | | | | IRS then the account is closed as non collectible. |
| that debt fall onto you? Or can the IRS collect on a | | | | You may end up in debt too...However, before you |
| deceased person's tax debt at all? | | | | start to enjoy your new found inheritance there are |
| The only way the debt can fall to you is if you filed | | | | some things that you should know; because the IRS |
| jointly at which point you would become the primary | | | | plans for the assets dear old grandpa left you in his |
| debtor and still owe the IRS. | | | | Will. Some of that inheritance is taxable and some isn't. |
| A family affair...However, if that isn't the situation then | | | | It's important to know the details of your inheritance so |
| who does have to pick up the tab? After all the IRS | | | | that you don't end up in a pickle with the IRS too. |
| doesn't like to give up on any money it's owed; even if | | | | · Life Insurance payouts are non taxable. |
| the IRS has to dig up grandpa's corpse to get it. I | | | | That's because Life Insurance isn't considered income |
| never had to disrespect the final resting places of the | | | | because it's used to take care of the deceased's |
| dead when I was an IRS-Hitman. We took care of | | | | funeral and provide for family. |
| seizing any personal valuable before your loved one | | | | · Lump sum cash inheritance is considered |
| went into the ground. | | | | income and is therefore taxable. If you receive a lump |
| The bare bones...Here's how things work when a | | | | sum inheritance then you need to report it on your |
| deceased loved one owes the IRS. The executor of | | | | taxes as income and be prepared to pay taxes on |
| the estate has to inventory all assets. Once that is | | | | the amount. |
| done any debts the deceased had prior to his/ her | | | | · Property such as houses or cars is non |
| death are paid, and the remaining assets both liquid and | | | | taxable unless they're sold. Any proceeds from the |
| non liquid is distributed among the beneficiaries per the | | | | sale of inherited assets are also considered income |
| Will. | | | | and must be reported on your taxes. |
| That assumes there is an estate or assets to sell and | | | | Having to go through the death of a loved one can be |
| pay off creditors. For example if assets or property | | | | difficult enough without having to worry about the IRS |
| were transferred prior to or upon death, if stated in a | | | | getting involved. |
| Will, there isn't anything collectible. In the case of there | | | | Now you have the smoking gun...Use it! |