Posted on 04/22/2018 12:37:24 PM PDT by lee martell
Remember that song by Tom Jones; "I who have nothing!". That pretty much describes me. I'm near 62 y/o, working part time. I hope to keep working at least for the next eight to ten years, then start taking my Social Security.
I have no savings to speak of. I will always owe the IRS something from unpaid student loans or wrongly filed tax statements. Most times I don't receive any return at all, it's simply 'absorbed' and paid out to the Govt. The one bright spot is that due to a sibling's death last year, I have received about $20.000 from her estate. More should be coming later this year.
My question is, is there anyway to protect that inherited sum of money, to safeguard it, in case the govt. gets tired of waiting for the scheduled payout. I know from experience that the IRS has the ability to go to my bank at any time, and scoop out all that it contains, if they choose to do so. It has happened before, and I've never forgotten the shock.
Some online searches to that question advise setting up a retirement plan. I currently don't have one. Are there short term retirement plans that would allow me excess to my principal without incurring an Early Withdrawal 'punishment' fee? Could I renew such a plan after a few years have passed?
If it matters, I'm a Navy veteran. My next stop would be to ask someone at the Navy hospital to refer me to an advisor. Most people think they know, but have limited knowledge. I want to do things above board, no tricks. But I don't like the notion of being fully vulnerable to the mercies of the tax collection system.
At some point, the irs can’t come after you for past taxes.
After 16 years, I’m still waiting for the IRS to get back to me with answers to a few rather basic questions. Based on the nature of the questions, I don’t ever expect them to contact me in the next 20 years.
For the win.
I was diagnosed with metastatic prostate cancer at age 61. There is no cure, but there is treatment to hopefully delay the end for several more years and maybe long enough for the cure.
My CPA son and I concluded I’d have to live to 79 to make it worthwhile waiting until I was 65. That’s not going to happen, plus I have use of the money for three years.
Take it and a bimbo to Los Vegas for a few days ... it will relieve you of the money and more importantly the stress of worrying about keeping the found money.
I pay all the taxes I owe. It’s a VERY LOW NUMBER.
Collection agents don’t have time to chase people who know the law as long as they keep quiet about it.
Good for you.
Not exactly who I was commenting to, but...nice story, bro.
Sounds like a plan!
Due to recent tax law changes, the exemption on death taxes is $10,000,000 for 2018 and indexed to inflation therafter.
Can’t answer about the IRS but if you owe money then invest the $20,000 in NVIDIA stock. You will soon be rich enough to pay off all debts.
I did and it went up 4 times from what I paid to buy in just a year and a half.
Solid quarter reports for over 2 years. If you keep the stock for over a year you will pay about 25% in state and federal tax of the profit when you sell. The stocks have been bouncing up and down since March due to that pesky trade war but will go back up soon.
Keep track of the will and the part where it says you inherited the money as the IRS will come to you years later saying you owe money.
I think you have a good approach given the circumstances.
Find joy in each and every day. Find some quality to observe and appreciate, even when it seems that ‘nothing much’ is going on. It’s the same advice most of us should be taking anyway. Best of luck to you.
Yaelle, this is good advice. If you have a CPA or tax professional it would be good to review your situation.
If you have not filed a year and need to, file. If the IRS filed a Substitute for Return on your behalf you need to respond with your return. The IRS is always going to assess your tax in the least advantageous way. After that, get a loan pay it off or set up an Installment agreement with the IRS.
NVIDIA is going for about $228.7 a share right now.
Are they only sold in Round Lots? Usually = 100 Shares.
No way could I dream of that now or later.
Spend it on women, alcohol, and gambling. Then squander the rest.
You can buy 1 share or any amount you like. That stock will split at some point and you get free shares like 4 to 1. When that happens I will then buy and sell the first months as I suspect the stock will be going up and down as it was in March and early April. Imagine 10,000 shares x $10 or $20 a share. I could buy a house, car, furniture with just the small rise in price. Tax would be about 38% or less as I had the stock for less then 1 year. I see myself having a few million in the next 2 years or less if they can keep up the good earnings.
My relatives received $300,000 each on a sale of their parents house. They also receive money from a trust and have good paying jobs. I told them to buy nvidia when it was about $62 a share. They could have bought about 5,000 shares. Today they would each have about 1.25 million.
One of my cousins wanted to do so but her know it all husband said no. At Christmas he bragged about a stock he had that made 35%.... His wife is pretty ticked off about the money they could have had. His reply to what the nvidia stock is doing is ‘it could go down too’.
Stocks I look at. Current price and 52 week range
NVDA $228.71 52 week range $102.11 to $254.50
ANET $260.65 52 week range $135.21 to 311.67
IPGP 232.13 52 week range $121.23 to 264.11
LRCX $191.91 52 week range $139.24 to 234.88
NFLX $327.77 52 week range$143.40 to 338.82
ROKU $32.57 52 week range $15.75 to 58.80
That is simply not true.
The IRS may send you a document and REQUEST that you sign agreeing to a specified "imputed income" based on past returns. It is not a tax return in any way shape or form. The IRS just wants you to believe it is a tax return they filed for you.
That form is nothing more than a CONTRACT that you have no duty to sign or return, no matter what an IRS collection agent tells you. If you sign it, it is likely enforceable, but maybe not if you think it is coercive. Best not to sign it.
I was sent two of these documents many years ago. Ignored the first one. When I got the second one, I called the collection agent and we had a relatively short, and mostly pleasant conversation.
My first question was, "Is this a contract?" The agent agreed that is was, so I asked him if understood that the U.S. Constitution does does permit people to be forced to sign any contract. He reluctantly agreed.
I asked this IRS agent a few more questions and requested that he get back to me when he had the answers. He also admitted that he had a quota on the amount of money he was required to collect. I told him that I did not owe taxes at that time. Furthermore, I simply wasn't worth the effort it would take him to only to come up empty-handed. I haven't heard from the IRS in over 15 years because they have no good answers to a few very basic questions.
BTW, I pay every dime of taxes that I owe.
Praying for you. May a full healing miracle come to you.
I told him to consult an accountant. That is all I need to say.
I am no expert on IRS enforcement actions, but absent a valid filing, if they assess tax based on income reported to them by 3rd parties I would certainly want to challenge any assessment that I considered incorrect by sending my return with the correct filing status, deductions, exemptions,credits, and tax. But yes, you most certainly have the right to ignore their notices.
What if the law does not require you to file? There are provisions in the IRS code that simply have no basis in law; i.e., statutes. Once the IRS sees that you actually know the law, they leave you alone because opening that can of worms would be a huge problem.
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