Hi there HUMAN...it is late and I am trying so hard to keep up on all the fabulous posts, barely able to hit the "thanks" button before I fall asleep from utter exhaustion. "
Tis the season" ya' know. But I wanted to answer your question, direct from the IRS Pub 17 (It's a quick reference book):
Gifts and inheritances. In
most cases property you receive as a gift, bequest or inheritance is not included
in you income.
I underlined the word MOST for a specific reason....there was a young man who performed one of the most courageous, selfless acts of bravery (I still cry when I write about it)
I ever seen. People donated lots of money to him. But he owed the IRS money, was unemployed (laid off due to recession), hadn't filed for years and they seized his bank account. In a nutshell, once the money gets into a bank account, it is fair game for any agency to seize. Hope that answers your question.
fftobed:
BTW, before anyone gets too sad...He is doing wonderful now. It seems some kindhearted tax accountant heard about him, volunteered their services, and helped him file all his back returns.