Statute of limitations

[Bonnie]

Does anyone know how far back the IRS will attempt to collect on business or personal taxes. Will they go back to 1975? I know a gentleman who has been living on the streets as a homeless person since 1975. He is now 84 years old. At the time he left in 1975 he owed the IRS money, not sure how much. He was a contractor, framed houses. So thinking he owed SE tax and probably personal tax also. Would they still attempt to collect this if he applied for Social Security or would the fact he walked away owing eliminate the possibility of him drawing Social Security

[taxea]

maximum SOL is 10 years then they wipe the debt off the books.
The SOL for audit is up to 7 years if they find consistant errors, normally it would be three frm date of filing or two from date of assessment.
I would have client sign a POA, then request an income and accounting going back 10 years (to 2006). This will tell you whether the IRS shows any outstanding debt. Once you have this information you will be better able to determine how best to assist your client.

[taxmom34]

if he hasn't worked since 1975 or filed a tax return does he really expect to receive social security? seems if he qualified he would have done it years ago (he's now 84)

[spanel]

if he hasn't worked since 1975 or filed a tax return does he really expect to receive social security? seems if he qualified he would have done it years ago (he's now 84)

Was thinking the same exact thing.

[DaveinTexas]

See Policy Statement 5-133 (P-5-133)

Policy Statement 5-133 (P-5-133) states the IRS will accept the previous 6 years of tax returns to bring a delinquent filer back into the fold (current).

Say goodbye to the 70s, 80s and 90s and almost the 2000s in his case.

[DaveO]

I see no reason for him not to file for SS. If the only income he would have is SS it is unlikely the IRS would take that to satisfy old tax debt.

[taxea]

I see no reason for him not to file for SS. If the only income he would have is SS it is unlikely the IRS would take that to satisfy old tax debt.

you may be underestimating Uncle Sam

[DaveO]

you may be underestimating Uncle Sam

Perhaps but they are still limited to 15% of the benefit. 85% of something is better than 100% of nothing.

[S T]

It might be also that he has limited Social Security Benefits under regular Social Security Retirement due to work history.

however, might look at the SSI benefit, not sure if SSI converts to regular SS Retirement eventually.

Also, I just placed two of my clients receiving only Social Security Benefit ( Income Changes from 2013 to 2014 and 2015) and owed back taxes, into a Collections Hardship - so IRS has their accounts suspended for collection. You do have to send in the financial paperwork (form 433 F - I believe) and I had POA, and talk to someone on the phone, however, it worked.

Sandy

[Bonnie]

Not a client. This man is my daughter in laws grandfather. He walked away from the family in 1975 and I helped locate him in Florida in 2012. He has lived homeless all these years. Living on the streets there now. I went to visit him a few weeks ago. He has no interest in having a home or anything. As he is getting up in years it may come to the point where he has to accept some help, although he seems very healthy to me at this time. But I was just wondering if he would qualify for SS. Even couple hundred or anything would be nice. He doesn't want it when I talked to him about it. Just thinking and trying to find options. Some day I will go back to see him again. My desire would be he come home. His family would care for him and not expect any income or money from him for doing it. Didn't know under the circumstances if he would qualify to draw SS. He doesn't want it, but I want it for him if he has anything coming to him after all these years.

[taxea]

It might be also that he has limited Social Security Benefits under regular Social Security Retirement due to work history.

however, might look at the SSI benefit, not sure if SSI converts to regular SS Retirement eventually.

Also, I just placed two of my clients receiving only Social Security Benefit ( Income Changes from 2013 to 2014 and 2015) and owed back taxes, into a Collections Hardship - so IRS has their accounts suspended for collection. You do have to send in the financial paperwork (form 433 F - I believe) and I had POA, and talk to someone on the phone, however, it worked.

Sandy

isn't CNC wonderful and I love the new 433f form. So much easier that having to prepare the a or b.