Tag: tax debt

What Happens to Tax Debt Posthumously?

Written by Paul Belfiore on September 27, 2024. Posted in Blog, Taxes.

Amherst, NH Family Seeks Answers After Losing Their Loved One

In the event of a death with taxes owed to the IRS, the executors and administrators of the estate are responsible for this debt. In general the IRS can only claim outstanding tax debts that can be taken out of the estate. This means that the executor is not liable personally for any outstanding tax debt. This includes any past outstanding taxes, as well as past and future taxes. Future tax bills may be incurred if the estate includes investments that are earning dividends or a rental property generating income.

How to Settle Your Tax Debt for Less Than You Owe

Written by Paul Belfiore on May 26, 2023. Posted in Blog, Taxes.

Bedford, NH Resident Seeks Help

Finding out that you owe the IRS a large sum of money in outstanding tax bills can be a very daunting
experience. For many, it can be difficult to come up with this unexpected amount. It is possible to
compromise with the IRS on the amount of outstanding taxes that you owe, finding an amount and
payment schedule that is more manageable. Using Form 433-A, you will provide information about your
finances, including income, assets, and investments. You will also note any outstanding debt and your
household’s monthly expenses. You will need to include supporting documents for this and a copy of
the completed Form 656. This form will outline the compromised resolution for your tax debt, including
whether this will be paid as a lump sum or monthly payments.

How Does Tax Debt Work Posthumously?

Written by Paul Belfiore on March 17, 2023. Posted in Blog, Taxes.

Nashua Resident Looks for Advice After Losing a Loved One

If there is an outstanding tax debt at the time of death, the IRS can place a federal lien against the
estate. The taxes must then be paid before any other debts or accounts. If this is not done, then the IRS
can pursue payment from the legal representative of the deceased person. Unpaid federal taxes have a
lifespan of ten years. If the tax debt exceeds ten years, then this is no longer able to be collected. If the
debt is under ten years, the family of the deceased will be liable for payment to the IRS.

How Does Filing for Bankruptcy Affect Tax Debt?

Written by Paul Belfiore on September 16, 2022. Posted in Blog, Taxes.

Milford, NH Resident Weighs His Options

Filing for bankruptcy is a difficult decision, and one that should not be taken lightly. While under federal bankruptcy law this will stop creditors from chasing you, tax debt is treated differently being considered nondischargeable priority debt. With exceptions, bankruptcy will not eliminate this type of debt and it is given priority over other claims. If you have a tax lien against your property, filing for bankruptcy will not remove the lien and the IRS will still have a claim to your property until the debt is paid.