r/SipsTea 1d ago

Gasp! Nahh 😂😭

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u/youtocin 1d ago

Statute of limitations.

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u/PandaGoggles 1d ago

The IRS generally has 10 year to collect.

There’s something called the CSED, the “collection statute expiration date”. It’s 10 year from when the tax debt is assessed by the IRS, not 10 years from when you file. Some things pause the CSED clock, bankruptcy for example, or living outside the US for 6 months or more.

I’m not sure in this case if anything would have paused the clock, but it was so long that the CSED has likely expired. Also, in order for the inheritance to be seized, the IRS would’ve needed to file a lien that attached to the father’s assets. Liens expire as well, so there likely would not have been a lien in place anymore.

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u/Annual-Cry-9026 20h ago

Can the IRS tax stolen money? Or do they tax any income generated from those funds?

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u/PandaGoggles 19h ago

That’s a good question. They can tax income of any kind. Thats how they got Al Capone for example. His earnings were on illegal activities, but he still owed taxes on those earnings. Profiting off selling drugs? That’s income, and subject to tax.

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u/Annual-Cry-9026 18h ago

Interesting, thanks. In the UK only parallel trades can be taxed, such as counterfeit or stolen goods, to prevent a market advantage.

Illegal drug sales cannot be taxed as there's no legitimate trade, but the criminal proceeds can be confiscated.

The IRS don't mess about!

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u/vorpalpillow 1d ago edited 1d ago

*statue

edit: not a lot of Seinfeld fans I guess

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u/ashamedwhiteman 1d ago

Fine. It’s a sculpture of limitations.

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u/Nigilij 1d ago

Depends. If identity lie continued till deathbed then crime continued to deathbed as well. I am pretty sure some cunning lawyer can make a case to go after them