Monterey, CA Elder Abuse Scammers Posing As IRS Agents

A pile of money sitting next to stacks of cash.


There have been numerous cases of elder abusers posing as IRS agents on the phone and demanding payments for some made up past due bills.  The IRS said they would never call people without first sending a letter, and now they have reversed a decades-old policy where IRS agents would show up on your doorstep to collect unpaid taxes and unfiled tax returns.  The Treasury Department said it was reversing its policy due to fears that anti-government and anti-tax groups would track down IRS employees with malevolent intent.  So be assured that any phone call or in-person visit from a supposed IRS agent is a scam.

IRS Gives Relief To Taxpayers Who Inherited IRAs In 2020 And 2021

A jar of coins with the word retirement written on it.


The Internal Revenue Service has announced that it will delay enforcement new rules requiring withdrawals from some inherited retirement accounts until 2023.  This follows a myriad of complaints that the changes were confusing.  The relief applies to taxpayer complaining that the changes were confusing and applies to anyone who inherited retirement accounts in 2020 or 2021 who the IRS said had to take annual withdrawals right away instead of waiting until the end of a 10-year period to liquidate the accounts.  This means that this group of taxpayers is not required to take RMDs for 2021 and 2022.

More Changes On The Estate Planning Front

A jar of coins with the word retirement written on it.


The I.R.S. is giving widows and widowers more time to deal with complicated estates after one spouse dies.  Typically, when one spouse dies, the other one gets all or part of the estate tax-free.  The surviving spouse can also carry over the deceased’s unused estate tax exclusion if they file an estate tax return and choose what the IRS terms “portability.â€Â  Previously, a surviving spouse had only 15 months to file the return.  Under new rules, however, the window for filing was extended to two years in 2017 and then last week it was raised again to five years.  Talk to your tax accountant if you have any questions about the new rule.

IRS Taking Public Comments On Controversial Change In Rules For Inherited IRAs

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`The IRS will take public comments through May 25 on a controversial change to the Setting Every Community Up for Retirement Enhancement Act, which passed in 2019.  Known as the SECURE Act, it allowed anyone who inherited an IRA to withdraw the money any way that they wanted, including skipping annual distributions, provided the account was drawn down to zero by the end of year 10.  Now, the IRS is proposing that this option would only be available to non spouse beneficiaries who inherit an IRA if the original owner dies before having to take required minimum distributions.  If the original owner dies after April 1 following the year of the person’s 72nd birthday, the date when RMDs are first required, non spouse beneficiaries must take RMDs in the first nine years and then empty the account in year 10 (Kiplinger’s Retirement Report, May 2022 page 14).

Monterey County Elder Abuse Alert : Scammers Posing As The Police

A pile of money sitting next to stacks of cash.


The Monterey police are warning local residents of a phone scam where callers identify themselves as law enforcement and demand payment, threatening you with arrest if you don’t comply.  Some identify themselves with the actual names of local or federal law enforcement.  They will ask you to buy bitcoin or gift cards and then read the serial numbers off of the cards.  Your caller ID may show the call is coming from a local law enforcement agency, the FBI or the IRS.  If you receive a suspicious call, you can contact the Monterey Police Department at 646-3830 or 646-3914.

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