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irs workout and rental property

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J

Jake10

Guest
Hi, i live in Pa and plan on doing a "offer and compromise" with the irs on back taxes owed, would it be illegal to transfer a rental property to my son as a gift prior to this workout? and can he then sell this property in the near future? i'm not sure if i can even do a transfer cause the irs already filed a liens on me for the money.
any advice is appreciated, Thanks
~Jake10
 


L

loku

Guest
Offer in compromise

It is illegal to transfer assets to protect them from the IRS once it has started trying to collect. Although some people have legally protected their assets using family members, it takes advance planning and timing. Protection strategies are not guaranteed because the IRS can challenge a transfer. For example, if the transfer is within two years of the assessment, they may claim it was a fraudulent transfer.

To be safe, see an attorney to make sure you do the transfer legally and do not commit fraud on the IRS.
 

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