Potential IRS Problems?

My 89 year old Aunt has recently become disabled, and I've been asked to take over her finances. She doesn't have a lot of money, she has been living off Social Security ($1012/mo) and a small pension ($240/mo) her house is paid for. She has about $1000 in a savings account .

In going through her paperwork, I discovered that she hasn't filed any income taxes since her husband died in 1990. Now I don't want to ask the IRS about this because I'm afraid that they will come in, take the house, and kick her out on the street. She is frail and old, and something like that would probably kill her.

So, what can I do without alerting the IRS vultures?

Relax. The IRS has rules regarding the need to file a tax return and your aunt is below the limits.

If it makes you feel better, you can look at the IRS website at www.irs.gov and look under individuals and their need to file which will confirm this. Neither her nor you will have any problems.

You should feel honored that you were asked to look after her finances. It show that you are well thought of and very trustworthy.

i agree that there is not a real problem here but you can call the irs 800 phone line and ask questions without telling them who you are...they don't ask for anything but figures...that way you can rest your mind. and they don't trace your call either...they have better things to do.

No problem, her income is well below the limit where she'd have to file.

So you don't have to do anything. Unfortunately by not filing she did miss a rebate a couple years ago, but it's too late now to get it.

more than likely she didn't need to file
you are talking about 19 years of not filing? in her papers you must have found a notice from IRS about unfiled returns? if not, she probably is beyond the filing requirement

With her income there's no need for her to file. Her income is WAY below the filing requirement amount. Her SS benefits are not taxable because her other income is so low. That leaves only the $2,880 annual pension as potentially taxable. That is still below 1990's filing requirement amount let alone today's filing requirement amount.

The IRS already knows about the income she's received and they would have contacted her long ago if they though that she might possibly owe anything.

Rest easy, there's NOTHING to worry about here!

Just as an FYI though, even if she owed the IRS "big bucks" they would not seize her home and put her on the street. They'd just issue a tax lien and wait for nature to take its inevitable course.