Billionaires and the middle class alike can’t hide from the IRS!!
To think you’re ever out of reach of the IRS is to think incorrectly. “Flying under the radar” is a term better left for situations not involving the IRS. Whether you’ve skipped filing a few tax returns over the years or if you posthumously owe $388 million in gift, estate and generation-skipping taxes, the IRS will eventually get what it believes it deserves.
Was that last example too specific? That’s because it belongs to a story about how the estate of Bill Davidson, the deceased billionaire owner of the NBA’s Detroit Pistons, the WNBA’s Detroit Shock and the NHL’s Tampa Bay Lightning, was forced to pay $388 million to the IRS, after losing a lawsuit to challenge an assessment of additional taxes. Davidson’s estate was tax deficiencies are broken down by $187 million in gift taxes, $152 million in estate taxes and $49 million in generation- skipping taxes. The reasons for the decencies were because the estate undervalued corporate stock and improperly valued self-cancelling installment notes.
Now just because the IRS was recently able to garner a $388 million windfall doesn’t mean they’re going to stop watching everybody else just as close. In 2013 alone the Treasury took in a total of 12.7 billion in estate tax revenue. Making sure your loved ones affairs are squared away before their passing is important to protecting your family’s way of life.
Whatever amount you owe, the IRS will do its best to get it. As we all know, most of our population is not made up of billionaires, but a lot of us that have owed taxes in the past know the realities that go along with the situation. IRS wage garnishments are one way the IRS will go about getting its money. Getting IRS wage garnishment help from a company like Tax Tiger is a great way to make sure you’re on the correct side of the IRS. IRS tax attorneys can help to possibly reduce the amount you owe and get you into a payment plan that works for all parties. Letting your account get to the point of litigation is never a good idea when it comes to dealing with the IRS.
Source: IRS Grabs $388 Million From Billionaire Davidson Estate – July 8, 2015 – Forbes Magazine
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