Legal Question in Business Law in Florida

Income from overdue bond.

My Dad has a bond, that he never sent to the company, for payment. It's probably worth about 40$. The company asked for it years ago, due to bankruptcy, they wanted to pay there final dues. My Dad was only going to get pennies to the dollar and never sent it in. Now we rec. a letter, to send it in and also a W-9 form. Does this mean , he will have to pay taxes on this small amount? My dad is a senior , and doesnt file income tax. Does this mean he will have to , if he sends this bond to the company? If he doesnt send it to the company/bank, they are reporting to turn it over to abandoned property to the state where we live. Your help will be apprieciated. Thank you much.


Asked on 1/27/07, 4:04 pm

1 Answer from Attorneys
Johm Smith tom's

Re: Income from overdue bond.

The company is required by law to turn the money over as abandoned property after (I believe) 5 years of holding the credit if you do not claim it. Everyone that earns money and is a US citizen is required to pay taxes, but there are free online tax programs for people that do not have complicated tax returns. Check at www.irs.gov for something like Free File.

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Answered on 1/28/07, 2:12 pm


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