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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11121
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I owe I.R.S. from money rec"d wife Ins.She died of cancer. I

Customer Question

I owe I.R.S. from money rec"d wife Ins.She died of cancer. I have had a heart attack
and two strokes. I am not working and income I get help with is a Food Card ($219.00) mo.
and money from my mother who is on chemo. If and when I recover, how much money
will I have to pay each month??
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

...

First lets deal with why you are being taxed... Settlements and lawsuits for personal injury and sickness are not taxable.

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Also insurance proceeds from health insurance is not taxed in most circumstances. (But one exception is employer-sponsored health insurance for workers' domestic partners, which is considered taxable income under federal law.

An employee must pay tax on what his or her partner's coverage costs the company; some employers "gross up" an employee's salary to cover that tax.)

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But lets say that there is a tax bill owed from some other source...if THAt case, you may be able to work out an installment payment plan with IRS for a little as $25 per month .... That's the least they will typically set up.

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However, you MAY also qualify (given your circumstances) for what's called an Offer In Compromise

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An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:

  • Ability to pay;
  • Income;
  • Expenses; and
  • Asset equity.

IRS generally approves an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.

...

Let me know what questions you have

...

Lane

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If this HAS helped, I'd appreciate a positive rating, by clicking or touching, the smiles or stars on your screen ... that's the ONLY WAY I'm credited for the work here.

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Customer: replied 1 year ago.
This is my EMail - Mark does not have a computer. Also I am not privy at this time to go over
the info - it is at Pa. (135 miles away) I am just trying to help him. At this time his cell phone is not
working. He has NO MONEY.
Expert:  Lane replied 1 year ago.

OK, let me know hw I can help further.

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And if this HAS given an idea of the oprions I would appreciate your positive rating by clicking on or touching the stars on your screen.

...

That's the ONLY way I'll receive a portion of what you paid JustAnswer, for my time and expertise here.

...

Thank you,

Lane

.