Tax Question

[ferco]

An 82 y/o friend asked an interesting question recently. He retired at 65 on SS and a $300 a month pension. No assets / property. Widowed. All children grown. He hasn't filed a tax return since retirement. He's concerned about going to jail. What can (would) the IRS do to a 82 y/o....would they even expend the time, effort, resources since there's probably no taxes owed anyway and his life expectancy is less than 5 years. I told him he isn't Wesley Snipes the actor with millions who didn't file for years.

Has anyone encountered a similar elder situation?

 

[Gill]

Tell him to rest easy. He probably doesn't have to file. The filing requirement for over age 65 in 2012 is total income of $11,200. Even if he exceeded that he would have no tax due and therefore no penalty.
Bruce

 

[MichaelB]

The IRS would have sent notices and acted against his bank accounts. A couple of questions.

Has he received any notices from anyone?
Is any tax being withheld from his SS?
Is he getting 1099's from SSA and his Pension provider?

 

[pb4uski]

Tell him to rest easy. He probably doesn't have to file. The filing requirement for over age 65 in 2012 is total income of $11,200. Even if he exceeded that he would have no tax due and therefore no penalty.
Bruce

+1 At that level of income his SS would likely not be taxable and his pensions would not be sufficient to file. My grandmother had SS and a slightly smaller pension and didn't have to file.

 

[tessaduncan]

He might want to file if he had any withholding or if he is eligible for a state credit (i.e. heating, property tax, etc). Then he is entitled to money back.