$750,000 in back taxes due
Hey all, I am asking for advice for a friend. (I swear it's not me and am honestly asking for a friend lol) This guy sold some land a few years back for close to $3 million, and just this week got a letter from the IRS asking where their ~$750,000 cut of the sale is. My friend did not 1031 this deal, did not pay taxes on it, and spent the money on a down payment for a home and other life expenses over the years. The way I see it, my friend has two options: refinance or sell the home to attempt to pay back a portion of this $750,000 tax bill. Does anybody see another route that I may be missing to help resolve this, or am I pretty spot on with my two courses of action? Thanks!