IRS Seizure Of Vested Insurance Renewals

[sakahowdah]

What is the name of your state?What is the name of your state?What is the name of your state? Wisconsin

It's taken me well over a year to even consider calling the IRS as I have been on disability Social Security for many problems most stemming from emotional one's. (Haven't called because I've been afraid to as one of my heart attacks occurred while I was on the telephone). Also, I'm afraid to tell them that I'm on Social Security for fear they might take that too.

I worked for an insurance company that claims I made a lot more money than I did in the year 1999. They said something like I was paid commissions and it was made out to look like a loan. When I terminated my employment from them and started to receive vested renewals from the policies I had sold the supposed loan all of a sudden turned into earned income. It's very complicated and something I don't really understand.

I was receiving about $90/month in vested renewals. The IRS has seized those monthly payments for well over a year now. I know it doesn't sound like much but that $90/month represents a very sizeable percentage of my income. I haven't worked since the year 2000 and was wondering if there is any possible way to halt their seizure of my vested renewals and get back all they've taken from me thus far.

Any thoughts on my perdicament would be greatly appreciated...Thx -Dan-

[seniorjudge]

Why is the IRS seizing your dough?

[sakahowdah]

Originally Posted by seniorjudge

Why is the IRS seizing your dough?

Because when the insurance company declared my supposed loan to be earned income of about $20,000, in the year of 1999, the IRS imposed a tax of around $1,100 taxes due. Since then they've been adding delinquency and interest charges. Last count was around $1,800.

The thing is that I never received this $20,000. That's what the insurance company estimates that my vested renewal account is worth and what I "Should" receive from it over the years. Unfortunately I was only getting $90/month. Far cry from a lump supposed lump sum (earned income) of an estimated $20,000.

So, you see, it's like I'm supposed to pay the tax up front on something I've never received...And if I die tomorrow my estate won't see any future vested renewals. So where's the fairness in this..? Also, I haven't filed a return since 2000 as I don't make enough to qualify to file. Again...where's the fairness in this..?? ...Anyone..??