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Important Information Regarding Your IRS Tax Debt and Bankruptcy!

Important Information Regarding Your IRS Tax Debt and Bankruptcy!
"""I'm filing for bankruptcy and I owe taxes for three years of unfiled returns. I eventually submitted my taxes. Can I include them in my bankruptcy filing?

No, you may not. As part of the requirements for including an IRS tax debt in bankruptcy, none of the years for which you are seeking to include tax debts must have been filed late. Consequently, you cannot include this tax debt in your bankruptcy.

I am currently in the process of filing for bankruptcy, and the IRS has just informed me of the amount I owe them. Isn't that against the collections stay?

The IRS can send you a notice detailing your current tax debt. They are unable to collect on it or take collection actions, but they like to send you periodic reminders that they are thinking of you.

My attorney for bankruptcy informed me that I would receive my tax refund this year. However, the IRS applied the payment to my tax debt. Was my bankruptcy lawyer in error?

Unfortunately, your counsel erred in this instance. The IRS can still apply your tax refund to your debt, even if you're in bankruptcy.

If you file for chapter 13 bankruptcy, your tax refund would be distributed to your creditors, including the Internal Revenue Service.

Should I attempt to include my IRS tax debt in bankruptcy, or should I not include it and instead hire a tax attorney to assist me with my IRS tax debt?

It depends. If your tax debt meets the criteria for bankruptcy inclusion, you should include it. If it does not satisfy the criteria, postpone your bankruptcy and negotiate a repayment plan with the IRS.

The criteria for including tax debt in a bankruptcy are as follows: 1. the debt must be at least three years old. None of the relevant years may have been filed late. No tax debt may result from fraudulent tax returns.

Now you have conclusive evidence...Use it!""

" - https://www.affordablecebu.com/
 

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"Important Information Regarding Your IRS Tax Debt and Bankruptcy!" was written by Mary under the Finance / Wealth category. It has been read 159 times and generated 1 comments. The article was created on and updated on 02 June 2023.
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