Q: Can the IRS take my life insurance policy money as a loan in which i have to pay back the insurance company or lose it.
They have put a levy on me for 44,000.00. They say I was an employer (I threw newspapers) and charged all kinds of charges that are ridiculous. I have been homeless since oct. 2012. But they took a loan from my life insurance co. In my name and i am responsible to pay it back or I lose it. Can they do that? It's a 1000.00 policy. I'm in california. The policy was signed by my dad in 1959. Do today's irs rules apply to a policy from 1959?
A:
You need a consultation with a tax attorney. I am not aware that the IRS can seize life insurance proceeds, however, I do not know all the details of your case so it is impossible for me to give you a complete answer. If you cannot afford an attorney then contact a low income taxpayer clinic in your area. Here is the link to find one. https://taxpayeradvocate.irs.gov/about/litc
If you are homeless and do not have any income, you may be eligible to be marked currently not collectible or to submit an Offer in Compromise.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
