FDIC interference?

[laz98]

 Advice please -- since I have all of her tax info for 2010, should I just file her taxes (saying she will pay later) for her?   OR leave it alone and let the IRS catch up with her later and ask for her return?

Thoughts -- how long do you think before the IRS takes action regarding 2009 taxes?  2010 taxes?   Her notice from the IRS came end of December 2010 (re: 2009).    She hasn't and won't respond to the IRS.   She has one valuable asset - a vehicle, paid in full, that the IRS could possibly find out about.  No bank accounts in her name.

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wow, i can't believe check-cashing places won't take her checks either!

if all she has is 1099s for 2010, it's not surprising that she owes money.

h & r block are some fairly incompetent people.  the CPA office has plenty of people coming in asking them to fix HRBs' mistakes.  right now they are working on one where HRB told a woman she owes over $4k.  in reality, she should be getting about $800 back.

if she is not going to work with the IRS, there is no point in you filing her taxes.  the interest & penalties will work out the same either way.  the only difference is that the IRS gets more pissed off when you don't file, because it gives a perception of tax evasion (not too far off in this case).  i would say leave her to her own destruction.

there is really no set amount of time before they catch up with her.  it's happening more frequently now because the govt doesn't have any money, but there is no way to say when they will get to her case.  could be tomorrow.  i would imagine that her ignoring their communications can only accelerate the process.

sounds like they probably wouldn't take her car, but with the govt, you can never be too careful!

look out for yourself in this scenario.  it sucks that you are stuck down in it with her.

[MattH]

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IOBA wrote:

Her reality is different from most people's.

1.)   She has trouble with paper checks because she can not cash them.   No bank will let her inside their doors.   She's cost too many of them money and then has politely told them to FOAD.

2.)   Her last set of paper checks she signed over to me and I deposited.   But the bank (Bank of America) would not release the funds for five days.  It was a Friday late afternoon before a three day weekend.   BA doesn't feel that they need to immediately release gov't funds.   I did not have enough cash in my account to cover her checks, not that I would have anyways, because in a sense that would be loaning her money.    The check cashing places will not cash her checks anymore either.   I don't know what that real story is.

3)   She knows she owes for 2009 to the IRS.  She says it's HR's fault because they held her Traditional IRA and they gave her disbursements from it (drained the account), therefore they should have known about it and included it on her tax return.   Since they did not, and she pays them a lot of money for protection, it's on them, not her.   And before you ask --- no, she will not call HR and talk to them.   It's not her problem, therefore not her responsibility to inform them THEY owe the IRS $1500 from THEIR mistake.  

4)   She thought she might owe for 2010.   When her 1099's came in, I ran them through the tax program, and she definitely owes!  It's about 5k.   She paid NO taxes during 2010 and her  taxable income was roughly 42k.   Again, she doesn't feel this is an issue.    I told her about about the tax return and owing money.   I asked her about sending them some money from her income.   She said no - the IRS does not get a dime. 

5)   There was a problem with her ss check coming in and she refused to call to find out what happened.  That is what prompted me to wonder about the FDIC.

6)  She has no intention of calling HR block or the IRS regarding 2009 & 2010.  

Advice please -- since I have all of her tax info for 2010, should I just file her taxes (saying she will pay later) for her?   OR leave it alone and let the IRS catch up with her later and ask for her return?

Thoughts -- how long do you think before the IRS takes action regarding 2009 taxes?  2010 taxes?   Her notice from the IRS came end of December 2010 (re: 2009).    She hasn't and won't respond to the IRS.   She has one valuable asset - a vehicle, paid in full, that the IRS could possibly find out about.  No bank accounts in her name.

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Yikes, I would expect sooner or later she and external reality are gonna have a nasty collision.  I forget who it was that said, "reality is whatever does not go away just because you stop believing in it."

[IOBA]

Thanks Laz98 & MattH for the feedback.

In mentally reviewing things, I realized her 1099 G (state tax refund) had not arrived when I ran her numbers. So in reality, she may owe even more money.

With regards to your advice, I will not be filing her taxes for her.  I might print out what I have and give it to her.   But that is it.

Technically, she has two vehicles, paid off, in her name.  So I can see the IRS coming after at least one of them.  I hope they do.

[laz98]

from what i have been reading, since this has really piqued my interest, the IRS can come in & inventory your home to see what they can take!  they need a court order to do so, but it's pretty much a rubber stamp sort of thing.  having 2 paid off vehicles probably does not help her case, since that's less debt that she can claim is keeping her from paying her taxes.  i'm glad you are going to steer clear of the fallout that is sure to rain down on her.

[IOBA]

Wow - she says she has tons of expensive jewelry.   

Hey, she paid cash for a 12k ring.   The jewelry store mailed her a form and said they sent a copy of it to the IRS.    They said they were required to do so because she paid cash.  Any clue about that?

I don't see any place to claim that on her taxes, and don't even think it is claimable.  But what does the IRS do with the information?

[laz98]

it raises a red flag & may cause the IRS to investigate you for money laundering, etc.  it's not something she has to claim on her taxes, from what i understand.  however, comma, the IRS is DEFINITELY going to want to know how she can afford to pay CASH for a 12k ring & not pay her d*** taxes!!!

[IOBA]

My accounts don't see that kinda of money activity!   I don't even have that much in cash reserves!   Nor do I own possessions that are worth that much!  The (new/old) family vehicle is worth about 9k, the little furniture we have is  worth 5k maybe?   No jewelry worth that much...I do have a million dollar smile.   Does that count??  

They can talk to her about her finances.   The cash purchases she made are explainable, if she takes the time.  She just needs to do that.  

[laz98]

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@IOBA wrote:

My accounts don't see that kinda of money activity!   I don't even have that much in cash reserves!   Nor do I own possessions that are worth that much!  The (new/old) family vehicle is worth about 9k, the little furniture we have is  worth 5k maybe?   No jewelry worth that much...I do have a million dollar smile.   Does that count??  

They can talk to her about her finances.   The cash purchases she made are explainable, if she takes the time.  She just needs to do that.  

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sorry, i didn't mean YOU personally, i just meant in general.  didn't mean to give you a heart attack!

not to argue with you, but i don't see how that purchase would be explainable...

[MarineVietVet]

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@IOBA wrote:

Her reality is different from most people's.

1.)   She has trouble with paper checks because she can not cash them.   No bank will let her inside their doors.   She's cost too many of them money and then has politely told them to FOAD.

2.)   Her last set of paper checks she signed over to me and I deposited.   But the bank (Bank of America) would not release the funds for five days.  It was a Friday late afternoon before a three day weekend.   BA doesn't feel that they need to immediately release gov't funds.   I did not have enough cash in my account to cover her checks, not that I would have anyways, because in a sense that would be loaning her money.    The check cashing places will not cash her checks anymore either.   I don't know what that real story is.

3)   She knows she owes for 2009 to the IRS.  She says it's HR's fault because they held her Traditional IRA and they gave her disbursements from it (drained the account), therefore they should have known about it and included it on her tax return.   Since they did not, and she pays them a lot of money for protection, it's on them, not her.   And before you ask --- no, she will not call HR and talk to them.   It's not her problem, therefore not her responsibility to inform them THEY owe the IRS $1500 from THEIR mistake.  

4)   She thought she might owe for 2010.   When her 1099's came in, I ran them through the tax program, and she definitely owes!  It's about 5k.   She paid NO taxes during 2010 and her  taxable income was roughly 42k.   Again, she doesn't feel this is an issue.    I told her about about the tax return and owing money.   I asked her about sending them some money from her income.   She said no - the IRS does not get a dime. 

5)   There was a problem with her ss check coming in and she refused to call to find out what happened.  That is what prompted me to wonder about the FDIC.

6)  She has no intention of calling HR block or the IRS regarding 2009 & 2010.  

Advice please -- since I have all of her tax info for 2010, should I just file her taxes (saying she will pay later) for her?   OR leave it alone and let the IRS catch up with her later and ask for her return?

Thoughts -- how long do you think before the IRS takes action regarding 2009 taxes?  2010 taxes?   Her notice from the IRS came end of December 2010 (re: 2009).    She hasn't and won't respond to the IRS.   She has one valuable asset - a vehicle, paid in full, that the IRS could possibly find out about.  No bank accounts in her name.

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Walk away and don't look back. It would be different if she was not capable of handling her own affairs but she is capable. She doesn't care about her situation and neither should you.

Let her sink or swim on her own.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Imua]

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@laz98 wrote:

it raises a red flag & may cause the IRS to investigate you for money laundering, etc.  it's not something she has to claim on her taxes, from what i understand.  however, comma, the IRS is DEFINITELY going to want to know how she can afford to pay CASH for a 12k ring & not pay her d*** taxes!!!

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yes, i believe that any cash transaction of $10,000 and over is reportable to the IRS.  iirc, this was put into effect after 9/11/01.

i paid cash ($14,000) for a new car in 2002, and the car salesman had to ask me where the $ was coming from (my savings acct) - he said he was required by law to furnish that info to the IRS.

i'm curious as to where she keeps her $ if she doesn't have a bank acct - under her mattress?