If I file bankruptcy on the IRS, but my spouse does not, will the filing stop the IRS to both of us?
When a bankruptcy is filed on the IRS, Section 362 of the Bankruptcy Code imposes what is called an “automatic stay” on collection activity by creditors, including the IRS. The automatic stay requires the IRS to release any levys and to cease any further collection action.
But what if a husband and wife owe back taxes on joint [...]
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 [...]
“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 [...]

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