Betty The Restauranteur

[Alpha Strike]

If you put it on the IRS to get what's theirs...they will. I recall a revenge posting on reddit where a guy kept giving an employee loans on his salary for which customers never materialized, so he forgave them, which put the guy $20,000 in the hole to the US government...

...and the IRS never surrenders, and never gives up.

So my knowledge of tax law is about zero... why did forgiving the loan put the guy in the hole so much?

[taxguykarl]

Somehow I think this inheritance is all in her mind...

Or maybe not. It took almost two years for my mother and her cousin to liquidate my late, great uncle's estate.

As his original chosen executor died (Illinois does not allow corporations to be executors...not even law firms ), mom and J had to petition the court to be so named. Moreover, the witnesses also had all died. Good thing no one challenged the will. Also great uncle had a lot of investments to liquidate and a house to sell. The house was not in the best part of town.

Turns out he was the lawyer for the deceased and these people were his relatives who were anxious to hear the will expecting a big payday. "They're going to be very disappointed, he left it all to charity."

Let me guess, they all get a boot to the head.

[eltf177]

Somehow I think this inheritance is all in her mind...

I don't remember if I posted this before. I used to work for a company that put vaults in graveyards to protect caskets. We put the vault in before the funeral, and afterwards put the lid on when the casket was in the vault. This meant hanging around during the funeral. One time it seemed more like a carnival than a dignified ceremony to see off a loved one.

I was eating my lunch when a gentleman walked up. He had a few questions about the vault which I answered. All of a sudden there was a lot of laughter from the gravesite. I made some comment about respect and he just shook his head. Turns out he was the lawyer for the deceased and these people were his relatives who were anxious to hear the will expecting a big payday. "They're going to be very disappointed, he left it all to charity." I had to laugh, and asked if he was going to tape the reading for America's Funniest Videos. He wished he could but said his staff was going to attend, the family was probably going to go berserk!

[KuariKaydrith]

If the trust paperwork lists out who is supposed to be paid and how much, surely she can get a copy of that paperwork, can't she? If she can get a copy of that the trustee pretty much has to make sure the funds get paid out, and the trustee needs to provide copies of the trust to the beneficiaries. At least that is as far as I'm aware.

[Ghel]

I'm going to take her at her word that the relative in question actually died. However, she has already said that she doesn't have documentation that she's actually owed this money. It sounds like she heard about the inheritance from another relative who's also owed money from this estate. Supposedly, there's a trustee who works for the bank where the money is being held who's refusing to pay out any of the money, and the family has hired a lawyer to force the trustee to pay them their portions, to the tune of $72,000 each.

I take this all with a grain of salt of course. Well, more like a bucket of salt.

[sirwired]

I wonder if the relative in question is even dead yet. And/or if she even has any idea what's in the estate and estate documents.

[Ghel]

I'm sorry for what you went through, Minflick.


The branch manager talked to Betty yesterday. She was wishy-washy about when she and her husband would be able to come in to sign the loan documents. Even though they'd agreed to come in today or tomorrow, now she's saying that she might not be able to make it in until next week. She has afternoons off, he's not working, and they have two vehicles. There's no excuse for them not to be able to come in.

BM also asked if they'd made a decision on the second mortgage, and Betty said that they were going to wait. BM was nice while he was on the phone, but when Betty and her husband come in, we'll have to tell them that that means we have to foreclose on the restaurant. We gave them one last option, and they refused. The only thing I can figure is that Betty really thinks she's going to get her inheritance soon. The thinking of a gambler.

[Minflick]

Sigh. DH died in January, leaving 2013's taxes only partially paid, and a large amount to pay for 2014. He made 3/4 of the family income, so it's not like I had the ready just sitting around. I could file jointly, and have to cough up money, or file separately, get a refund on MY taxes, but then be liable for nearly twice the joint debt. I could walk away from the debt if I wanted, but sooner or later the IRS would attach the house, and then I'd be hosed. I broke down in the accountants office and howled. I was so angry and so hurt! DH also happened to leave certain items sitting around the house that I could sell, which I did, which managed to pay off the entire debt. That was the day I went home and took off my wedding band. I nearly threw it out the car window!

So now, I don't have a pot to piss in, but I also don't owe the Feds or the hospital! Dammit.

[Jetfire]

If you put it on the IRS to get what's theirs...they will. I recall a revenge posting on reddit where a guy kept giving an employee loans on his salary for which customers never materialized, so he forgave them, which put the guy $20,000 in the hole to the US government...

...and the IRS never surrenders, and never gives up.

As FIFA's leadership is finding out as we speak.

[Tama]

If you put it on the IRS to get what's theirs...they will. I recall a revenge posting on reddit where a guy kept giving an employee loans on his salary for which customers never materialized, so he forgave them, which put the guy $20,000 in the hole to the US government...

...and the IRS never surrenders, and never gives up.

[Ghel]

But then, never underestimate the IRS's ingenuity in collecting back taxes.

Yes. I'm concerned that when we do the title work for the second mortgage, there will already be an IRS lien against the house for the back taxes that Betty owes them. But we'll see if Betty and husband even agree to do a second mortgage.

[taxguykarl]

Meaning the IRS still comes after Betty and husband for back taxes?

Apparently. But then, never underestimate the IRS's ingenuity in collecting back taxes.

[eltf177]

The SBA guarantee goes to the bank if we suffer a loss on the loan. It doesn't go to the borrower at all, so there's no way for it to get intercepted by the IRS.

Meaning the IRS still comes after Betty and husband for back taxes?

[Ghel]

The SBA guarantee goes to the bank if we suffer a loss on the loan. It doesn't go to the borrower at all, so there's no way for it to get intercepted by the IRS.

[taxguykarl]

How much of that SBA guarantee will get intercepted by the IRS for the back with holdings?