[chelaw]

When I was 9 my father passed away and left me a IRA inheritance. When I was 10 my mother who was my guardian at the time pulled all the money out of the IRA and spent it on herself. She however never paid the taxes. I am now 24 and being faced with a tax bill of over $23,000 from my inheritance that I never even got. Do I really owe this amount or is there a way to have it put in my mother's name? What legal action can I take?

[Five Rings]

What a terrible story!

This is really a legal question and I suggest you go to that forum. However, somebody is going to have to pay the tax.

[AtlantaTaxExpert]

That IRS withdrawal happened almost 15 years ago. I am surprised the IRS is going back that far.

You can sue your mother for malfeasance on this issue In my opinion. You should probably also look at the role of the IRA custodian in this matter. An argument for failure in his fiduciary responsibilities by giving your mother the money could be made in a court of law. As Five Rings noted, these issues are LEGAL questions best posted in the LAW Forum.

On the tax side, you should contact the IRS and ask that the tax debt be forgiven, given the circumstances and the fact that you were a minor at the time of the IRA distribution. Perhaps the TaxPayer Advocate could help you.

[Five Rings]

Good answer ATE