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can IRS take proceeds of life ins. policy on deceased spouse,

Customer Question
even if the surviving spouse...
can IRS take proceeds of life ins. policy on deceased spouse, even if the surviving spouse (beneficiary) had no part in deceased spouse's corporate tax liability
Submitted: 7 years ago.Category: Tax
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9/3/2010
Tax Professional: Merlo, Accountant replied 7 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello JA Customer,

 

If the deceased spouse was the owner of the life insurance policy, then the proceeds of the policy become part of the deceased person's estate, regardless of who is actually listed as the beneficiary on the policy. If the deceased person owes a tax debt to the IRS, they can take the proceeds from the life insurance and any other estate assets in order to satisfy this debt.

 

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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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