If I have an IRA will the IRS take it to cover back taxes owed?
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An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.
https://www.irs.gov/businesses/small-businesses-self-employed/levy
An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.
https://www.irs.gov/businesses/small-businesses-self-employed/levy
But if the IRS seizes an inherited IRA holding only stock, to pay back taxes, can the IRS convert the stock to cash, and does the heir-taxpayer owe taxes on the converted amount? And penalties for early withdrawal?
If the IRS forces you to liquidate the IRA to pay taxes it is a taxable distribution and must be reported on your tax return however it is NOT subject to the 10% penalty ... how decent of them.
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