chorette
Aug 23, 2011, 08:42 PM
Disability they gave him a medical lum sum for back pay can the IRS take it all
AtlantaTaxExpert
Aug 24, 2011, 07:19 AM
Unless he owes back taxes from past deficiencies, the IRS will NOT take it all, but the disability payment, if the disability policy was provided by the employer, IS subject to federal income taxes.
RUN, do not walk, to your nearest local tax professional to consult with him about your husband's situation, because there are simply too many variables to properly address this issue over this forum.
chorette
Aug 24, 2011, 02:59 PM
The disabilty is tax free has been declared 100%disabled from agent orange. Will irs contact us before taking money?
AtlantaTaxExpert
Aug 25, 2011, 10:53 AM
Yes, the IRS IS obligated to notify you before confiscating any such payments.