Both the IRS and FTB have Investigations Divisions that would take calls, emails or letters from anyone regarding taxpayers that might not be in compliance with all tax laws. So your daughter's threats might be real. If self-employed taxes were not paid by you and you knew that you owed them, the IRS may assert fraud which has no statute of limitations. On the other hand, if you simply did not know that you owed these taxes in the 80's, the 3 year statute of limitations ran a long time ago and the IRS will not pursue you. The statute of limitations in California is 4 years. If the IRS has not been hounding you for the self-employed taxes, I would hazard to say that they have long ago written them off. Your summary does not provide me with sufficient facts for me to comment much further. You should talk to a competent tax attorney or CPA to settle the issue once and for all. Why have it hanging over your head forever?
Answered on Jan 24th, 2013 at 7:55 PM