FIL casually dropped a bomb in a wholly unrelated conversation today.

Seems he got a letter back in December from his bank. The IRS had taken the last $0.40 from his checking account (that's right - forty cents).

Darling Wife asked for some details, and he somehow managed to find the letter.

Seems the IRS had placed a levy against his accounts. Just so happens his balance at the time the levy came through his account balance was in fact $0.40, so the bank did what they had to and sent the funds on to the IRS.

Timing and all that - he'd pulled the balance down to $0.40 the day before in his bi-weekly post-church 5 Guys visit. His SSI check hit the day after. No IRS activity since then.

Not yet anyway. Why is the IRS after him? Seems he didn't bother to file returns in 2006 or 2007 and they're interested in recouping the $18K they feel they're owed (taxes and penalties).

Oh goodie. No doubt this'll be fun.

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1961 220b: first project car - sold.
2000 CLK 430: first modern Benz - sold.
2001 CLK 55: OMG the torque!!! - sold
1972 280SE 4.5: Baby Gustav
1991 300TE 4Matic: Gretel the Snow Bunny - sold
1978 300SD: Katz the Free Man - given away
1980 Redhead: Darling Wife

A tax dodger eh? String him up!

dancing with the devil.....good luck.

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1991 560 SEC AMG, 199k <---- 300 hp 10:1 ECE euro HV ...

1995 E 420, 170k "The Red Plum" (sold)

2015 BMW 535i xdrive awd Stage 1 DINAN, 6k, <----364 hp

1967 Mercury Cougar, 49k

2013 Jaguar XF, 20k <----340 hp Supercharged, All Wheel Drive (sold)

Assumed guilty until proven innocent. I had a go around with revenuers based on nothing more than their assumptions backed by ignorance. Took almost a year to clear up. I was 100% in the right and their entire thing was hooey. at the end, they never acknowledged anything but eventually they just stopped responding/going after me.


Here is the next letter your FIL will receive (I'll paraphrase).

1) Get naked.
2) Stand in front of this.
3) Turn around.
4) Spread em.
5) Bend over.

I'm going to guess there were more than a few mailings that went unanswered.

Fair assumption.

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1961 220b: first project car - sold.
2000 CLK 430: first modern Benz - sold.
2001 CLK 55: OMG the torque!!! - sold
1972 280SE 4.5: Baby Gustav
1991 300TE 4Matic: Gretel the Snow Bunny - sold
1978 300SD: Katz the Free Man - given away
1980 Redhead: Darling Wife

I thought there was a 6 year statute of limitations or some sort of jazz like that ... guess not.

It depends on the type of collection, but it's generally 10 years for the IRS collections. Six years is the civil statute for contracts.

You need to keep seven years' records for tax purposes, but there is no such thing as a statute of limitations when tax returns haven't been filed.

Bottom line rule is to always file, even if it's wrong or incomplete or you can't pay. At least that starts the clock running, otherwise it doesn't happen. When I was still practicing law we had the IRS make an appearance in a case requiring the filing of tax returns that were 12 and 13 years old that they said my client hadn't filed. Luckily the guy had them (either the IRS or UPS had lost them) and was able to produce his copies.

That's why I don't practice in tax! Yup, the statute for collection doesn't start until you file a return.

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1991 560 SEC AMG, 199k <---- 300 hp 10:1 ECE euro HV ...

1995 E 420, 170k "The Red Plum" (sold)

2015 BMW 535i xdrive awd Stage 1 DINAN, 6k, <----364 hp

1967 Mercury Cougar, 49k

2013 Jaguar XF, 20k <----340 hp Supercharged, All Wheel Drive (sold)

Yeah. I went a couple years without filing when I was first in business. They don't like that shyte! I ended up paying a few thousand in fines IIRC. Doesn't sound like much now but in 1975 it was a strong blow to me.

Don't F around with the IRS friends. Report your income, file the returns, pay the taxes. If you don't they can make your life miserable. Work with them and they can negotiate if the debt is big enough.

IN this case, the old gentleman can try to string it along hoping to die first and let the kids figure it out.

One of my attorney friends said a few months ago he had several clients who were elderly and thought to be well off who let their taxes go for the last ten years of their lives leaving an enormous tangle for the heirs.

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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC]

..I also have a 427 Cobra replica with an aluminum chassis.

Is he a TEA party member, by chance?

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1987 560SL
85,000 miles

LOL, yeah that explains it