If Your Parents Die Owing Money to the IRS, You May Have to Cover the Bill
Yesterday was Tax Day so taxes are still fresh on our minds, but here’s some some scary news you might not have considered.
If your parents died owing the government money, the IRS can and will come after you.
The Feds are targeting people who received over-payments of government benefits in the past. It doesn’t matter how long ago these over-payments occurred or even if the people are still alive.
So, hundreds of thousands of people expecting to receive tax refunds this month will instead get letters informing them that a parent’s debt allowed the federal government to confiscate their check. Nice, huh?
This policy that you might not have heard of was put into place in 2011 and has already taken $1.9 billion in tax refunds this year with $75 million of those refunds coming from debts that have existed for over 10 years.