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[–] o0shad0o 0 points 24 points (+24|-0) ago  (edited ago)

Unless the land is worth a fuckload of money I doubt they're after actual inheritance tax. That only kicks in when large amounts are involved. It sounds more like this is income tax arrears.

Part of the problem may be that the income tax was never filed for him in the last year, and when that happens the IRS often overcalculates what it should be.

What I'd recommend is you contact the taxpayer advocate service, which is a branch of the IRS that deals with family hardship, among other things. It may simply be easier handing the IRS all they demand up front, getting the land sale through, then coming back later after you've figured out what's really owed and getting the remainder refunded.

In any case, sorry for your loss and your headaches.

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[–] KingofKong [S] 0 points 6 points (+6|-0) ago 

I am going to contact them. I was unaware of this branch. No, the property isn't worth very much at all.

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[–] Hey_Sunshine 0 points 2 points (+2|-0) ago 

Develop on it and increase its market value!

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[–] Thisismyvoatusername 0 points 1 points (+1|-0) ago 

I agree he should contact the IRS, first and foremost. They may be able to,help resolve issues quickly and relatively painlessly.

I'm less sure about paying their demand amount up front. Maybe that approach is less of a headache, but I'm not sure it is the best approach. If OP is not fully satisfied with his own contacts with the IRS, before paying anything, OP should talk to a tax lawyer to really figure out all of the issues and possible approaches based on his specific circumstances.

If you overpay, the US Treasury is not going to give you interest on the overpayment. If you underpay, you will owe interest. So it is usually best to try to figure out what the amount owed is as close as possible rather than just accepting the IRS calculation.

The largest benefit of paying is that you can then contest the case in US Federal District Court. If you do not pay, you must go through the Tax Court which is an administrative court and part of the IRS itself. For various reasons, taxpayers often do better in District Court but it is heavily case dependent. The Tax Court is competent on tax law, but it operates on different rules not always as amenable to a plaintiff. I am not sure whether this even matters to OP and if he is unlikely to engage in protracted litigation, it might be better not to pay the full amount unless he thinks it is actually owed.

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[–] KingofKong [S] 0 points 2 points (+2|-0) ago 

Paying the amount upfront is not a option for me financially. I'm going to have to wait until after its sold to pay off whatever is owed.

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[–] o0shad0o 0 points 1 points (+1|-0) ago 

If you overpay on estimated taxes, the IRS will not give you interest on it. (Unless they've very tardy in returning it.) If they demand money, you pay, and then they accept they demanded too much, they'll pay you back interest. Not much, but some. They're kind of good like that. (They can afford to be, another division of the organization they belong to is the one that prints it all. :-P )

[–] [deleted] 1 points 18 points (+19|-1) ago 

[Deleted]

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[–] cynicaloldfart 0 points 4 points (+4|-0) ago 

Hey, @go1dfish, found you a buddy.

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[–] go1dfish 0 points 4 points (+4|-0) ago 

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[–] Cheesebooger 0 points 6 points (+6|-0) ago 

The kikes want their free shekels, goy

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[–] hindu_dindu 0 points 5 points (+5|-0) ago 

But, you dindu nuffin.

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[–] 9247881? 0 points 2 points (+2|-0) ago 

Name checks out

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[–] Thisismyvoatusername 0 points 2 points (+2|-0) ago  (edited ago)

I'm assuming your Dad died in the 2015 tax year. If so, the estate tax would only apply to the portion of his estate which exceeded $5.43 million (unless it was lower due to large gifts made in prior years for which he properly filed to apply against the exemption). I am assuming the estate was not that large so you most likely are not looking at the estate tax, but rather at income tax arrearages either from prior tax years where he owed money or for taxes related to the year in which he died.

I assume his estate went through probate and had the proper tax filing made, but if not, then that may be the issue. You definitely should contact the IRS and find out exactly what the claimed tax is based upon. They may have evidence of taxable income but lack all information of adjustments, exemption or deductions which would lower the tax.

Then, as I suggested in a response elsewhere, if you do understand and agree with them, contact a tax lawyer. This is unlikely to be something you want to attempt to muddle through on your own.

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[–] KingofKong [S] 0 points 5 points (+5|-0) ago 

Don't worry, I have my (((lawyer))) on it.

I will say that the information my fellow voaters have posted in response to me has been surprisingly helpful. I just came here to gripe about the IRS and get reemed in the comment section. Thank you for your advice.

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[–] TheyLie 0 points 2 points (+2|-0) ago 

Can you tell them you aren't paying them anything and that they can take the house and the land and pay all the debt on it themselves?

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[–] cynicaloldfart 0 points 0 points (+0|-0) ago 

They'll sell it for the lowest price with the least hassle and still bill for the remainder. Since they have a sale imminent, they'll realize more from that sale and reduce whatever he owes.

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[–] TheyLie 0 points 0 points (+0|-0) ago 

Bill for the remainder? Wtf that's criminal. What was I expecting from the irs

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[–] MadWorld 0 points 0 points (+0|-0) ago 

(((IRS))), criminals enslaving people in America #2.

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[–] HenryDavidThoreau 0 points 0 points (+0|-0) ago 

Tell them to fuck off.

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