Back Taxes

[cjwolfe]

If someone owes back taxes can the IRS come after life insurance proceeds if the taxpayer dies? Also, can the IRS garnish disability wages?

The taxpayer owes back taxes from about 15 years ago and hasn't heard anything from the IRS for about 7 years. Any views on that?

[ED SMITH]

If the return was filed 15 years ago, then it has most likely passed the statute of limitations for collections, which is 10 years. However, there could be circumstances where the statute was extended, for instance if a waiver had been signed, it would extend the statute another 5 years.

Disability such as SSI can be garnished up to 15%. If the person paid for the disability insurance themselves, it would not be taxable.

The insurance death benefits belong to the beneficiary.