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!
Offer in Compromise
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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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Income is burdened with past due bills, collections and child care judgments. He just has no cash flow.Comment
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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.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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[QUOTE=JoshinNC;61675]
Try it!!Comment
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Why so touchy?
[QUOTE=mesha;62154]
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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