Doing away with an audit result in bankruptcy.

I received this referral this week about eliminating taxes in bankruptcy:
I was audited for my 2005 taxes and owe $55,000 to the IRS as a result.  I owe other debt in addition to the IRS liability, and was considering bankruptcy even before an IRS Revenue Officer came to my house and left her card in [...]

When does the collection of IRS debt expire?

With more money sitting delinquent in the US Treasury than the government has resources to collect, this is a great question.  All of that “quiet” debt does go eventually go away.  
The IRS has 10 years to collect a tax debt.  The IRS refers to this as a “Collection Statute Expiration Date.” Internally, IRS personnel [...]

“But I thought bankruptcy couldn’t eliminate IRS taxes…”

I hear this often when I suggest bankruptcy as a source of resolution.  I heard it again today during a telephone conversation with a new client.  Here is what I explained to the client:
Under the bankruptcy code, the answer is ”Yes” to bankruptcy as a means of IRS resolution if you owe income taxes, you filed your returns, and the [...]

IRS by the numbers

IRS enforced collection activity continues to heat up.  Compromise settlements are down by 70% while bad debt accounts continue to accumulate.  Here are the numbers:
1.     779,000 taxpayer accounts were assigned to the IRS collection queue.
2.     The number of offers in compromises accepted by the IRS declined by 70% from 2001 (38,643) to 2007 (11,618).
3.     [...]