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widows tax liability

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What is the name of your state? GA My father died without a will. He cashed in his 401K in 2002 because of med bills from term illness. Fed Inc tax bill is around $60K; there was only around $50K left in a joint account when he passed. Were advised to file tax married/separate and mother would not be responsible for tax debt. Is this true and what is subject to seizure by IRS to pay this debt? Will she be able to keep the life ins $ she received? What is the consequence of not going through probate?


Senior Member
If the 60K tax bill includes "penalties" for early withdrawal of 401K monies, which were used to pay medical bills, much of that can probably be excluded using form 5329.

Honestly, with a tax bill that large, you should see a qualified attorney or Enrolled Agent in your area, to make sure this is handled properly from the beginning.

Since you say it's from 2002, and it is currently 2004, you're already late, and subject to interest and late-filing penalties as well.

I wouldn't attempt this without professional help.


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