earlytapemusic
Junior Member
Ohio
My girlfriend was in a plane crash when she was 15, from which she received a settlement, which was subsequently invested. She is 21 now. In the past 4 months, the bloodless IRS has been auditing her, and she just received a phone call saying she owes $16,000, which she and her parents plan to appeal. The investment company that she used to invest the money has long since gone bankrupt, and there is no paper trail of her account, which has allowed the IRS to basically make up a fee of 16,000 in which to charge her. Since this is from a settlement from an event which happened before she was 18, could there be any loopholes somewhere in here?
What should she be worried about right now, and is there a risk that an appeal could help? I have little knowledge of tax law, but I want to help her out.. Any information will be greatly appreciated!
My girlfriend was in a plane crash when she was 15, from which she received a settlement, which was subsequently invested. She is 21 now. In the past 4 months, the bloodless IRS has been auditing her, and she just received a phone call saying she owes $16,000, which she and her parents plan to appeal. The investment company that she used to invest the money has long since gone bankrupt, and there is no paper trail of her account, which has allowed the IRS to basically make up a fee of 16,000 in which to charge her. Since this is from a settlement from an event which happened before she was 18, could there be any loopholes somewhere in here?
What should she be worried about right now, and is there a risk that an appeal could help? I have little knowledge of tax law, but I want to help her out.. Any information will be greatly appreciated!