₪₪₪ What happens when a taxpayer subject to wage garnishment dies?
Taxpayer owes back income taxes and penalties as a result of repeated failures to file and pay.
IRS garnishes taxpayer’s wages every two weeks to satisfy the liability.
Taxpayer dies suddenly, with substantial outstanding liabilities that would have been satisfied in several years had taxpayer lived.
At time of death, total value of taxpayer’s assets were far less than outstanding tax debt owed to IRS.
Taxpayer died intestate. Taxpayer’s heirs are his 3 children.
Are taxpayer’s assets sold to satisfy liabilities to the extent possible? If so, what happens to remaining liability?
Does tax lien automatically arise on taxpayer’s assets?
Will IRS record lien, levy property?
Does tax liability vanish?
Judy, isn’t up to $6250 of the taxpayer’s personal effects exempt from levy under section 6334(a)(2) of the Internal Revenue Code? What if everything this taxpayer owns is clothing, furniture, and other personal effects, with total value less than $6250?
Moreover, all clothing is exempt from levy under 6334(a)(1).
My question is: Does this property remain exempt from levy in the hands of the taxpayer’s heirs?
Category: IRS Problems
