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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11861
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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As POA for my Mother, In May of 2011 I had to sell the final

Customer Question

As POA for my Mother, In May of 2011 I had to sell the final 80 acres of original homestead to cover my mothers Nursing home care. The property was in my mothers' Trust. I had researched and seen the possibility of a one time waiver may be granted by the IRS on Capital Gains, so In July of 2011 I requested a one time waiver to capitol gains as the property has had inheritance taxes etc.for several years, and also my mother was 96 yo.Neither myself or 5 siblings knew the original cost of the property, but research showed $50 to $60 per acre. Knowing that, I had a tax person figure out what the capital gain would be close to, so that we could file Income Tax as an estimate until we had an exact. On 30 March 2012 my Mother passed away-hence I was no longer POA but the tax estimate was sent in b4 16 Apr 2012 with an $80k check. IRS cashed the check but then sent a check back to us. when we had an amt for original sale My Mothers final taxes were filed and the amt was $72,125.79 the check sent in by Trustee was $176. We have waited while IRS lost files-even when registered mail-now they are demanding an additional $20k+ failure to file $16,228.30 failure to pay: $2,524.40
Interest $1,949.83 by 30 Sept. 2013. I still have not heard from my July 2011 request.
what is our next step---I feel everything was done with information available.
Submitted: 3 years ago.
Category: Tax
Expert:  Lane replied 3 years ago.

NPVAdvisor :

HI, First I'm sorry for you loss

NPVAdvisor :

Secondly, this really sounds rip for sitting down with a good tax attorney or EA (Enrolled Agent) ... Enrolled Agents don't WOKR for the IRS, they work for you, but have been trained by, and are enrolled in a special program, that lets them work "before the IRS." THis can get you past the folks on the ront lines

NPVAdvisor :

(sorry for the typos) ... A tax attorney, who also is an EA would be ideal

NPVAdvisor :

IF you want to go it alone (even though you haven't gotten to the point of LEVY or LINE would be to file an appeal ... this also "stops the locomotive" ... and gets you past those front line collectors and to the appeals office .... SEE THIS:

NPVAdvisor :

FROM IRS NOTICE 1660 (Collections and Appeal Rights): ... "You may appeal many IRS collection actions to the IRS Office of Appeals (Appeals). Appeals is separate from and independent of theIRS Collection office that initiated the collection action. Appeals ensures and protects its independence by adhering to a strict policyof prohibiting certain ex parte communications with the IRS Collection office or other IRS offices, such as discussions regarding thestrengths or weaknesses of your case."

NPVAdvisor :

Once they get the form that starts this process (The collections appeals process) the collection calls and letters stop and you get the chance to sit doen with someone that's reasonable and explain everything at one time ... the form is IRS FORM 12153, Request for a Collection Due Process

or Equivalent Hearing

NPVAdvisor :

And here's publication 1660:

Publication 1660 (Rev. 10-2012) - Internal Revenue Service

NPVAdvisor :

I still don't see you coming onto the chat here ... I'll moveus to the "Questions and "Answer" mode ... Maybe that will help (We can still continue a dialogue there ... just not in real-time chat as we can here in "Live Answer)

NPVAdvisor :

Please let me know if you want to discuss this more, or have further questions

NPVAdvisor :

Again, ... let me know ...

NPVAdvisor :

Lane

Expert:  Lane replied 3 years ago.


Hi Linda,

...just checking back in here, as I never saw you come into the chat.

Let me know if you have further questions;

Lane