I have a tax bill from 2004 of over $40,000 for cashing in my retirement early to help pay off money my husband embezzled from his company. Is there any way I can get this lowered or am I stuck paying this off for the rest of my life?
Offer and Compromise, twice, my husband spent two years in Federal prison, I never worked during our marriage till he went to prison, a gentleman at our church spoke for me and I was given a low paying job with the State of Florida (26,000/yr), my husband is now out of prison, still on probation (he has been home 2 years, 1 more year of probation) he was given a job by a gentleman making $1000/mo. We have gone from six figures to near poverty level. We have this IRS bill hanging over our heads plus the remainder of his restitution, roughly $200,000 plus a $10,000 fine from the department of professional regulation (he was a CPA). Since we gave up assets we didn't have to to pay off his debt, I'm just trying to see if we can erase or lower this debt. Thank you.
Hello and thank you for using Just Answer. I am sorry, but withdrawals from a qualify retirement fund will be tax as ordinary income to you. The IRS have ten years to collect past due tax assessed to you. If the tax was assessed in 2004 the IRS have until 15 April 2015 to collect past due tax. You can read more about early withdrawals from a pension fund at www.irs.gov/faqs/faq-kw49.html
10 years self employed , Income Tax Preparation & Representation