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WHen you inherit a spouse's IRA you can either receive the money as a distribution or treat the IRA as your own and have it rolled into an IRA under your name. If you take the money and do not roll it over into an IRA under your name then it is taxable.
Even if you are under 59 1/2 you are not charged the added 10% penalty. That is because it is inherited.
If you truly owe the $70k in taxes you can request an Installment agreement. This will allow you to pay over time.
The amount that was withheld for tax acts as a payment when you file your return (like your withholding does on your W2). Make certain you have shown the taxes withheld on your return so you are credited with that payment).
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