So, my former girlfriend called

[Cas]

She had moved to Maine back in 1999, met a guy and they were engaged to be married. A couple of weeks before they were to be married, he had a heart attack so they postponed the date. A few months go by and he's not feeling well so he makes her the president of his corporation....a couple of houses, a country store, art gallery and a couple of other things. He was also in the process of some IRS dealings that he failed to tell her about. SHe came to find out that some of the property was in escrow to be sold that would have taken care of the IRS issue. Unfortunately, he had another heart attack and died before he could sign the final paperwork for the sale. The sale remained pending up until about a year ago when it was found that the buyers couldn't qualify for the loan.
About 5 months ago, the IRS comes in a takes everything including her personal bank accounts and property.
Obviously I don't know the whole story but I didn't think IRS could touch personal property let alone someone that had nothing to do with the tax burden and wasn't related to the guy?
Granted, he signed over the corporation to her but shouldn't that be the only concern?
I guess it could depend on the type of tax burden.

[McIntyrelocal]

it depends on what type of corporation it is.There are many.

[3 daytona`s]

She had moved to Maine back in 1999, met a guy and they were engaged to be married. A couple of weeks before they were to be married, he had a heart attack so they postponed the date. A few months go by and he's not feeling well so he makes her the president of his corporation....a couple of houses, a country store, art gallery and a couple of other things. He was also in the process of some IRS dealings that he failed to tell her about. SHe came to find out that some of the property was in escrow to be sold that would have taken care of the IRS issue. Unfortunately, he had another heart attack and died before he could sign the final paperwork for the sale. The sale remained pending up until about a year ago when it was found that the buyers couldn't qualify for the loan.
About 5 months ago, the IRS comes in a takes everything including her personal bank accounts and property.
Obviously I don't know the whole story but I didn't think IRS could touch personal property let alone someone that had nothing to do with the tax burden and wasn't related to the guy?
Granted, he signed over the corporation to her but shouldn't that be the only concern?
I guess it could depend on the type of tax burden.
Can gain access of security boxes,checking accounts,savings accounts and any other assets you have. The feeling that a LLC will save you from the Head Hunters is false

[DeltaSigBoater]

Dont give her any money

[Cas]

Sometimes they only "take" your stuff to get you to sit down and negotiate with them. Might be time for her to hire a good attorney.
Apparently the one she had in Maine wasn't very good as he didn't do much in the past couple of months but take the rest of the money she had along with about $10K in artwork. I guess some of the artwork was at another gallery and some at an antique dealers.

[thatguy]

Mount the Woman.
Tommy

[Cas]

Dont give her any money
FOCK NO!!!!!
Interesting you mention that though. She asked if I would help her out with a 3rd party check she had......not a chance!

[Cas]

hmmmm, maybe I'll keep an eye on the IRS siezed property list to see if I can pick it up for cheap...sight unseen :D

[C-2]

The IRS tends to lien and levy first, then sorts it out later if required or forced to do so.
You mention a store and an art gallery – did they have employees? Some taxes they can hold individuals personally responsible for – like “trust fund” taxes, better known as 941 employee withholding tax (where the employer withholds taxes from employees, but the employer fails to turn them over to the government, and instead uses the cash as part of business cash flow).
Sounds like he was on a repayment/forbearance plan, which fell apart.
Are you asking to satisfy your curiosity, or she in need of help and you're trying to get some feedback for her?

[Cas]

I've already suggested she get a good attorney to deal with her situation so it's just my own curiosity.
I was thinking the same thing in regards to employee withholdings, IRS does not go lightly when it comes to that.

[C-2]

I've already suggested she get a good attorney to deal with her situation so it's just my own curiosity.
I was thinking the same thing in regards to employee withholdings, IRS does not go lightly when it comes to that.
Yup, a visit by a revenue officer is usually how they deal with it.
A good CPA is the best place to start - that and establishing some communication with the collections division at the IRS. If they've levied real property and bank accounts - not much else to lose (and probably no money for an attorney).
Is there, or will there be any probate for the guy? She might chat on free 1 hour consult with a probate attorney, see if the tax liabilities belong in his estate, or if she could get out of the jam by filing for probate even though it sounds like he didn't have an estate?

[widowmaker]

Dont give her any money
True words of wisdom.

[david_396]

Does she have big boobies?? Oh , about the taxes...

[Cas]

Yup, a visit by a revenue officer is usually how they deal with it.
A good CPA is the best place to start - that and establishing some communication with the collections division at the IRS. If they've levied real property and bank accounts - not much else to lose (and probably no money for an attorney).
Is there, or will there be any probate for the guy? She might chat on free 1 hour consult with a probate attorney, see if the tax liabilities belong in his estate, or if she could get out of the jam by filing for probate even though it sounds like he didn't have an estate?
true, no money but she does have some of the artwork with her, about 30K worth but that stuff takes time to sell. She just got a job but I'm pretty sure as soon as IRS can, they will probably garnish her wages also.
The fiance didn't have any other family thus the reason he made her the prez of the corp.....come to think of it, she said he also left her everything in his will. She only had the main house put into her name and left everything else in the corp. As I mentioned above, there's plenty I don't know about this whole thing.

[BajaMike]

Sounds like he was a scammer.....she is a scammer......or both:idea: .
If you have businesses and corporations and IRS problems and heart attacks you should already have accountants and lawyers......:eek:
My family used to be in the art business......most art is way over-valued.....:(
Sounds like a huge bucket of worms (or a not very well thought out story).

[Cas]

Sounds like he was a scammer.....she is a scammer......or both:idea: .
If you have businesses and corporations and IRS problems and heart attacks you should already have accountants and lawyers......:eek:
My family used to be in the art business......most art is way over-valued.....:(
Sounds like a huge bucket of worms (or a not very well thought out story).
I think it's rather difficult to judge people on bits and pieces of information. There was a lawyer involved who apparently wasn't all that good to keep her up to date on what was going on. If he didn't know, he should have. In the lawyer's defense, he may not have been the proper lawyer for the job.
As far as the art being overvalued, no argument there, she even said that but then again, there's a buyer for everything at any cost.
And yea, I'm sure it's a whole lot bigger bucket than she's letting on. I just don't think it's a good idea to try and run as this sounds like it's somethng that needs to be addressed immediately. If it's not, it's going to follow her forever.