I'm 62 years old, married, and had a major job change a little over a year ago. This caused me to run through all our savings and also withdraw a large portion of my IRA savings. As you know, I had to add the IRA distribution
and I ended up paying over $40k in taxes
for 2015 which as I said is equivalent to 80% of my entire annual salary.
I ended up taking a large distribution from my IRA to cover that and other expenses. Obviously, that will now put us
in the same position come next April. The only way I'll be able to cover the $35k in taxes next April is if I take the proceeds from our home that we just sold. We initially planned to sell it so we could buy a cheaper house but we wont be able to do that if I take the proceeds to pay the taxes we'll owe for 2016. My question is if we use the home proceeds to buy a smaller home as planned, and pay off the IRS
over the next year or so,will the IRS do more than place a lien
on the new house? Are there any other options available that I'm not aware of for my situation? Any thoughts, input, advice on this would greatly be appreciated.