Should we appeal the decision to pay mom's back taxes?
It definitely makes sense for your husband, on behalf of his mother to appeal the decision. It probably does not make sense to expend what little money your mother has on professional representation by an accountant or lawyer at this point. If you are unable to resolve the situation on your own, you may wish to utilize the independent advocate service. You may wish to consider filing criminal charges or a civil lawsuit against the person who stole your mother- in-law's money, but if there is little chance of getting any money to compensate your mother-in-law for her loss, there would be little reason to file a civil lawsuit. You may still want to file a criminal complaint to at least go on record that the reason for being unable to pay income taxes is that your mother-in-law's money was stolen. This may help in your negotiations with the IRS.
