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Unread 04-17-2012, 01:49 PM
 
2,713 posts, read 1,841,458 times
Reputation: 1818
Default Consequences of failing to file tax return for retiree?

I'll try to make a long story short.
My step-father moved to Argentina 4 yrs ago. He's a naturalized U.S. citizen. Unfortunaly, he recently had a hart attack that left him semi-paralized, therefore, he's unable to do many of the things that he used to do.
I believe he did not file his tax return this year, and I was just wondering what could the consequences be for failing to do so.

He's retired, receives social security benefits and a pension from his old job.

Any input is highly appreciated.

Thanks guys!
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Unread 04-17-2012, 01:57 PM
 
Location: North Metro Atlanta
3,982 posts, read 4,436,690 times
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Well the IRS can hit him with Intrest & Penalties:
Eight Facts on Penalties (http://www.irs.gov/newsroom/article/0,,id=205326,00.html - broken link)

Does he owe any taxes?

I would help File and get it in the mail in the next few days. I've read the IRS does not even start to look at postmarks on the mail Till a week from now.

Or you can quickly file for a extention today. that will give you till 8/15 to file.

www.irs.gov/pub/irs-pdf/f4868.pdf Get that in the mail today.
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Unread 04-17-2012, 02:07 PM
 
2,713 posts, read 1,841,458 times
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Quote:
Originally Posted by flyonpa View Post
Well the IRS can hit him with Intrest & Penalties:
Eight Facts on Penalties (http://www.irs.gov/newsroom/article/0,,id=205326,00.html - broken link)

Does he owe any taxes?

I would help File and get it in the mail in the next few days. I've read the IRS does not even start to look at postmarks on the mail Till a week from now.

Or you can quickly file for a extention today. that will give you till 8/15 to file.

www.irs.gov/pub/irs-pdf/f4868.pdf Get that in the mail today.

Thanks for your reply, I supposed there would be negative consequences for failing to file, but I wasn't sure what they could be.
I wish I could file for an extension for him, but I don't think it's permissible since I'm here in NY and he's down there.
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Unread 04-17-2012, 02:17 PM
 
Location: North Metro Atlanta
3,982 posts, read 4,436,690 times
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Down where? Argentina ?

If he out of country he automaticly get till 6/15/2012 with out needed to file extetnion form

U.S. Citizens and Resident Aliens Abroad
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Unread 04-17-2012, 02:33 PM
 
2,713 posts, read 1,841,458 times
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Quote:
Originally Posted by flyonpa View Post
Down where? Argentina ?

If he out of country he automaticly get till 6/15/2012 with out needed to file extetnion form

U.S. Citizens and Resident Aliens Abroad

Ohh that's great news.
I wasn't even aware that there was an automatic extension for U.S. citizens living abroad.

Thanks a lot for your help!
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Unread 04-17-2012, 07:15 PM
 
8,271 posts, read 5,128,783 times
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Just file it electronically for him on turbotax, who is anyone going to know who was actually moving the mouse and typing in the numbers?

And yes you absolutely have to handle this, it only gets worse over time, it never goes away, and they never forget.

Of note:
IRS Will Grab Social Security Checks
Quote:
April 30, 2001 -- In news that is certain to shock and dismay some seniors, the Internal Revenue Service has announced its intention to garnish the Social Security checks of debtors who are at least six months in arrears.

The program, set to begin in October, is authorized by the 1996 Debt Collection Improvement Act, which gave the Treasury sweeping powers to go after debtors, irrespective of age, including assigning accounts to private collection agencies, garnishing salaries, and withholding income tax refunds.

Social Security recipients who receive $750 per month or less would not be affected, but Treasury intends to withhold fifteen percent of all payments above that amount, except for payments to the disabled and others under the Supplemental Security Income program.
I'd assume they could go after pension too.
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Unread 04-18-2012, 10:26 AM
 
Location: Galloway, NJ
1,607 posts, read 1,633,193 times
Reputation: 1238
Quote:
Originally Posted by likeminas View Post
I'll try to make a long story short.
My step-father moved to Argentina 4 yrs ago. He's a naturalized U.S. citizen. Unfortunately, he recently had a heart attack that left him semi-paralyzed, therefore, he's unable to do many of the things that he used to do.
I believe he did not file his tax return this year, and I was just wondering what could the consequences be for failing to do so.

He's retired, receives social security benefits and a pension from his old job.
Social Security isn't taxed, but his pension is. He needs to file a tax return and pay taxes on his pension. Failing to file a return, especially when you owe the government money, will incur fines, late fees and interest on what you owe. The longer he waits to file a return, the worse these penalties are. While I don't think they are going to throw him in prison, the payment required to satisfy the IRS is only going to get larger the longer they have to wait.
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Unread 04-18-2012, 02:07 PM
 
10,227 posts, read 7,095,142 times
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Quote:
Originally Posted by TechGromit View Post
Social Security isn't taxed, but his pension is.

Actually, depending on one's income, a portion (up to 85%) of Social Security can be taxed. I know because 85% of my Social Security income for 2011 was taxed. Fortunately, I knew it would happen and was prepared for it.

I'll be in the same boat next year and am considering having taxes deducted from my Social Security payments starting next month.
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Unread 04-18-2012, 08:23 PM
 
39,614 posts, read 39,313,947 times
Reputation: 11636
I'd also check to see if they can garnish those SS benfits if he fails to file.
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