One rule to follow in bankrupting income taxes is that the liability must be from a return that was due to be filed three years before the bankruptcy is commenced. The key is to be careful...
Read PostCategory: Bankruptcy - Chapter 13, Bankruptcy - Chapter 7, Bankruptcy and the IRS, Unfiled returns
Here are five more situations in which the IRS is barred from taking collection action against you: When the timeframe to collect the liability has expired. The IRS has 10 years to collect a liability...
Read PostCategory: Bankruptcy and the IRS, IRS collection notices, IRS Enforcement Statistics, IRS levies and property seizures, IRS Seizures, Statute of limitations on collections
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...
Read PostCategory: Bankruptcy - Chapter 13, Bankruptcy - Chapter 7, Bankruptcy and the IRS, Innocent spouse
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...
Read PostCategory: Bankruptcy - Chapter 7, Bankruptcy and the IRS, IRS Audits
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,...
Read PostCategory: Bankruptcy - Chapter 13, Bankruptcy - Chapter 7, Bankruptcy and the IRS, IRS Audits, Substitute returns, Trust fund recovery penalty, Unfiled returns
