I'm preparing an OIC for a client. His only asset is a 401(k) Profit Sharing Plan. Can or will the IRS seize thses funds? The Plan would cover his past due taxes, but open a whole new world of hurts!
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Do the 433. If assets & income are more than the taxes due, the offer won't fly. The IRS can levy the 401(k), and penalties won't apply at least. but the distribution would be taxable. Can you qualify for an installment plan? -
Can the taxpayer make withdrawals from the plan?
If he can't touch the money the IRS can't either. I had one of these a few years back. The TP was willing to give up the plan but the employer said he couldn't touch the money until he retired. We sent the IRS a letter from the plan administrator stating that and the asset was off the table.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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[QUOTE=mesha;61656]Income is burdened with past due bills, collections and child care judgments. He just has no cash flow.
Thanks for reply.Comment
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Then how is he paying you??????????????
[QUOTE=mesha;61656]Income is burdened with past due bills, collections and child care judgments. He just has no cash flow.[/QUO
Just wondering?Comment
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The IRS won't care about his bills
However the child support and judgements perfected ahead of the IRS will be allowed. He will have to default on non-secured debt such as credit cards. Has he looked at bankruptcy yet?In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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Why so touchy?
[QUOTE=mesha;62154]I don't run a charity, I run a business. I do favors for folks who fall on hard times, but working an OIC for free is waaaaayyyyyy more than a favor.
Go hug a tree or something, I'm going to take my boat out this afternoon (cause I make the money for pay for it and the gas it guzzles).Comment
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