As the title states, my dad hasn't done his taxes in at least 24 years, as long as my mom has known him. We just got some mail that says he owes like $150k and now there is gonna be a lien put on the house, I'm 21 and in college and currently unemployed (Ive been looking for a job for like legit months and have gotten maybe 2 interviews total, both didn't pan out).
My older (half)sister suggests him getting a lawyer but we are flat broke besides some social security my dad gets every month, my mom doesn't qualify for SS because they raised the age limit to 70 ( iirc ). My dad flips houses for a living but used to work for like companies n stuff as a consultant and as of recently, has been putting the money from house flips into my account because I'm like, his treasurer? and then I am responsible for keeping like $500 in the bank account him and my mom are on (and me)
I feel super uncomfortable with it now knowing he hasn't filed his taxes in so long, and I kinda feel like he just used me as a way to get away from the gov/irs/? idk man. I have no idea what to do and I'm fucking panic ridden, should i remove myself from any linked accounts? i have credit cards tied to him.
My mom is pretty much solely dependent on his income, as she is chronically ill but was unable to get disability, I'm the only kid of my mom that she can count on for anything, my older sister is from my dads side (half sister) from his first marriage.
my parents are not married but live in the same house, theyv'e been together for like 24 years.
My mom and sister have tried to talk sense into him and he just wants to bury his head in the sand and think everything will go away if he ignores it.
Any assistance is appreciated.
My dad hasn't done his taxes in like at least 24 years
byu/AnxiousStranger21 inpersonalfinance
Posted by AnxiousStranger21
28 Comments
You are in a pickle and no mistake.
Don’t let him use your bank account – he’s clearly evading taxes and you might end up on the hook.
Get a job like your life depends on it even if the job sucks because the whole situation sounds precarious.
You’re not his treasurer, you’re his tax evasion partner. (Knowingly or otherwise).
Sounds like he may be trying to hide his income by putting it into an account in your name. Is he also on the account? And what type of account are we talking about here? How is he flat broke if he’s making income from flipping houses and stashing it away in your account? Something here doesn’t add up.
Yes you you should close any financial accounts you share with him so your assets aren’t frozen. For tax purposes, innocent spouse may apply to your mother. [https://www.irs.gov/forms-pubs/about-form-8857](https://www.irs.gov/forms-pubs/about-form-8857)
I’m not an attorney and this is not legal advice applies.
I would certainly try and talk to a lawyer. Even if there are free legal aide places at like law schools in your area. He needs to call the IRS as well. Ignoring it further is the worst option. They are known to be pretty lenient with payment plans. But this may be too big and too long of a delinquency for them to help out with. The only way to find out is to face it.
You yourself should also try and talk to legal aid, I would for sure not deal with moving his money through accounts. You might have better luck at r/legaladvice
Its so sad how many posts there are like this. And I think there will be an increase, as many parents are being revealed as incompetent planners when times get tough.
Do NOT allow yourself to continue being attached to a sinking ship. Can you get a lawyer? Can you get yourself removed from the bank accounts?
You need to figure out how to protect yourself, first and foremost. Not your mom, not your siblings. Protect yourself immediately.
Edit: a word
He absolutely need an accountant. Irs may say whatever they want but that isn’t final.
You say he flips houses. Let’s say he buys a house for $100 k. Works on it . Sells for $150k. Because he didn’t file, the irs thinks he had income of $150k.
An accountant will help with that. And cost much less than a lawyer. Also it sounds like your dad has depression and needs that help.
You absolutely must remove him from any shared accounts that link your finances to his, including bank and credit card. Otherwise you may find your assets seized to pay his debts because of the links.
Stop doing anything with his money. Now that you know he is not paying taxes, continuing to handle the proceeds from his business is making you complicit with his tax evasion. He must be solely responsible for the consequences of his actions.
Accept that the house will have no value to your parents as an asset because of the IRS lien. Your parents, not you, need to figure things out. This is not your burden to bear, and it’s monumentally selfish of them to have put you in this situation.
That’s the personal finance side. The rest belongs in r/relationships.
Incompetent planners? There may be a lot more at play. Thats a bit assuming.
Jump ship and save yourself. Your parents are screwed. Deservingly too.
Your Dad is likely going to jail. You need to protect yourself. You need to find an attorney. I would take this down and stop posting on the internet about it even anonymously.
He’s gonna lose the house, you should unlink your accounts immediately. Give him his money back. Freeze your credit so he can’t use your identity.
Get a job and move out.
> my mom doesn’t qualify for SS because they raised the age limit to 70 ( iirc )
LOL no they didn’t. Someone is blowing smoke.
How did he qualify for SS without paying taxes?
What’s the letter number the IRS gave you? If it isn’t letter CT11 or 1058 the lien isn’t 100% going forward yet, if it’s either of those 2 letters at the end of 60 days from receiving the letter all your dads banks and assets will be frozen. Your dad should have been assigned a revenue officer; dad must have been ignoring him. The good news is the IRS will not levy your house you live in especially if it will make you homeless, they would need a federal court order which they don’t like to waste time for that, they look for the other assets. Your dad needs to contact the revenue officer assigned to him, the revenue officer only puts a lien if you didn’t cooperate at all.
If your bank account is under your name and your dad doesn’t have his name under it, any money to your bank will be protected. Your dad’s assets are fucked I wouldn’t put anything in his bank honestly.
Don’t give him your money. They both need a lawyer. If she is chronically ill she should qualify for social security disability. They need a lawyer who can navigate this and negotiate with the IRS on their behalf. 5k for an attorney is way less than the 150k they owe.
Social Security eligibility starts at age 62. For most people, the check increases if you delay. If you delay signing up until age 70, your check will be maxxed out.
SS depends on:
1) how many years the applicant has worked. One needs to work a certain number of years at a job and have income that is recognized by the Feds. I cannot remember how many years it takes to be eligible.
2) one can also file for SS based on the income of their spouse. But that assumes they are legally married and both spouses have been filing tax returns.
3) disabled people can get SS checks without working. But there are eligibility rules to be met.
It sounds like your Dad will need an attorney. And I assume your Mom hasn’t filed tax returns, either. So she could be on the hook, too.
Get your Dad off of your accounts. Move out and find any job you can.
Yeah your dad may go to jail if he doesn’t try to fix this
How does this even happen? IRS incompetent or dude has been lucky?
Hello, you are an accomplice in his tax evasion.
Non-filing is going to get him fucked, and you are going up the river with him.
Tax attorney stat
You are being played and if you don’t lawyer up immediately, you are well fucked
Good luck!
He needs to talk to a CPA. He needs to get things filed. Has your dad been diagnosed with any health conditions or mental illnesses? I mean that seriously because at this point that’s the one thing that could save a lot of this. The IRS isn’t I. The business of collecting penalties, so, once you get the tax situation figured out, you can write a letter and he will likely only take the interest. I’m sorry this is happening to you, but everyone’s right, this is not your issue, however, it will become your issue.
Have your dad contact the IRS if he’s in the US and set up a payment arrangement
This happened to my dad because he didn’t file. They started taking money out of his check. Turns out after contacting a lawyer the found that had he filed he would have received a return anyway and the irs ended up paying him back
Before anything else, stop letting him put money into your account. Once the IRS finds out that’s happening, they’re going to seize every dollar you own.
You are helping your father commit tax fraud. Yeah.
You’re not his accountant or financial advisor. Respectfully, your dad has been mooching off of society- not paying his taxes and benefiting from government funded services.
Social security age is at most 67. The age seventy is to get extra social security. She could have gotten it as early as 62 but at a lower payout. Your parent are not telling the truth here for sure.
You may qualify for free legal assistance. You or your dad should try applying to your local legal aid.
Do not share ANY accounts with him. He will die, they will take his home, etc and it all dies with him UNLESS you were financially tied and they can find a reason to come after you. Do NOT share ANY accounts with him, don’t take money from him, get a job and move out. Your mom had a whole family with him knowing he doesn’t pay his bills and stayed with him for 24 years, not working (she’s disable to work but not to have kids and raise them?… on some level, she just didn’t want to work and repeatedly kept choosing all this knowing he’s a man who is screwing over his family and a bit of a con artist). Your mom should protect you from his financial chaos, HE shouldn’t be entangling you in all this, and you can get into trouble at 21 helping him in any way.
Work on a getaway plan. Love them from a distance and with your money and accounts COMPLETELY separate from them. At your age, you need to figure out your own life anyway, and why do you have credit cards with your parents as an adult??? Remove yourself from ALL linked accounts and credit cards.
Your mom is not married to him, and should be working on not solely dependent on him. People with incredible disabilities are able to find some kind of work (from home, with aid, etc) so she just has to stop making excuses, or she could find herself homeless because she CHOSE to live with a guy for decades that she knew was using his family and not paying what he was supposed to pay. I have a problem with chaotic people having kids and bringing kids into their mess, and am not a fan of kids sympathizing with the one parent (whom they imagine is a victim but is not because they chose it all and stayed and brought children into their bad choices). Would your half sister be willing to cut them off financially too and move out with you until you both are ok? Is she trustworthy? Who is she loyal to?
Have you checked your credit reports? There’s a chance your dad’s been using those too. He sounds like a real piece of work