Unpaid Income Taxes

[derexican]

What is the name of your state (only U.S. law)? California

I have a family member who is listed as a beneficiary to an estate. She didn't file or pay income taxes for 10 years when she worked as a Registered Nurse and made quite a substantial amount of money. She hasn't worked in the past 6 years and never resolved the issues of her paying her taxes so I'm assuming the interest is still being tacked on every year since. My question is whether the IRS can take everything she is set to inherit (interest in a real estate property and a sum from a very substantial number of savings accounts)? She started to collect Disability last year and I know the IRS hasn't been able to touch that. She has also re-married 2 years ago so I don't know if that would have any bearing on the situation.

Also, if anyone can tell me a ballpark figure of what 10 years worth of unpaid income taxes (100,000 income per year) plus 5 years of interest tacked on would end up totalling, I would really appreciate it.

 

[LdiJ]

What is the name of your state (only U.S. law)? California

I have a family member who is listed as a beneficiary to an estate. She didn't file or pay income taxes for 10 years when she worked as a Registered Nurse and made quite a substantial amount of money. She hasn't worked in the past 6 years and never resolved the issues of her paying her taxes so I'm assuming the interest is still being tacked on every year since. My question is whether the IRS can take everything she is set to inherit (interest in a real estate property and a sum from a very substantial number of savings accounts)? She started to collect Disability last year and I know the IRS hasn't been able to touch that. She has also re-married 2 years ago so I don't know if that would have any bearing on the situation.

Also, if anyone can tell me a ballpark figure of what 10 years worth of unpaid income taxes (100,000 income per year) plus 5 years of interest tacked on would end up totalling, I would really appreciate it.

Yes, the IRS could attach her inheritance for the unpaid taxes.

Tax on that much income, plus penalties and interest could be as high as 500k or as little as nothing.

If she was an employee, as many nurses are, she may have had enough withholding to cover the tax.

If she was self employed, with no withholding, it could be an enormous sum.

 

[derexican]

Yes, the IRS could attach her inheritance for the unpaid taxes.

Tax on that much income, plus penalties and interest could be as high as 500k or as little as nothing.

If she was an employee, as many nurses are, she may have had enough withholding to cover the tax.

If she was self employed, with no withholding, it could be an enormous sum.

She worked at a number of hospitals as an employee I presume. But, she also worked for the registry which is an agency that dispatches nurses to whatever hospitals needs them for a certain amount of time wherein she received a check every night that she was able to cash immediately for a minimum of $500 per check. By withholding, do you mean the taxes taken out on each check she received?

Thank you for your reply.

 

[LdiJ]

She worked at a number of hospitals as an employee I presume. But, she also worked for the registry which is an agency that dispatches nurses to whatever hospitals needs them for a certain amount of time wherein she received a check every night that she was able to cash immediately for a minimum of $500 per check. By withholding, do you mean the taxes taken out on each check she received?

Thank you for your reply.

When she worked for the hospitals most likely she had withholding. When she worked for the registry most likely she did not.

No one can give you any remote hint of how much tax she might owe. She would have to actually prepare the returns to find out.

Yes, withholding means the taxes taken out on the checks she received.