IRS Liens & Gifts to Children
Subject: IRS Liens & Gifts to Children
My father is old, sick, under med care, no longer working, has no assets, no real estate but owes the IRS approximately $30k due mistakes his accountant made in 95, 96, 97 & 98. Dad has been paying off this debt for years in installments. He can no longer pay. I want to put the debt into ''non-collectible status''. He has some money in a savings account due to the money my sister and I have been giving him over the years and some of which he saved on his own. I don't want the IRS to attach my dad's savings. As my sister and I will need it to take care of him further. Can he gift some money to me and some to my sister so the IRS will not seize it? It's really our money for taking care of him financially for so many years.
Category: Tax and Taxation Law
Subject: Re: IRS Liens & Gifts to Children
Unfortunately, you did not get legal advice before making the gifts! First, immediately have your Dad withdraw the money from the accounts and use it to pay his necessary bills. The IRS usually levies bank accounts as its first source of "enforced" collection.
Do not make any more gifts to your Dad. If he has no money, make payments to his creditors directly.
Depending on the amount of the accounts, your Dad may qualify for either a Bankruptcy or Offer in Compromise. Please check my website http://www.taxesq.com/