Another great question from a reader on how the bankruptcy code and tax code can intersect when discharging taxes in bankruptcy. Dear Mr. Levy, We owe income tax from 2007. We filed the return on October 15, 2008 with an extension. We filed a collection due process appeal and had a hearing, agreeing to monthly [...]
Bankruptcy and the IRS
When the IRS gets you with a levy, bad things can happen – your wages are frozen and you are looking at living without a paycheck. The money you need to pay bills is suddenly swiped out of your bank account. This presents an urgent dilemma requiring immediate relief. So, what are the two quickest [...]
Turn on your television, listen to the radio, and it will be there: advertisements encouraging you to settle up with the IRS. Or watch the media, and you will see government agencies getting coverage for cracking down and closing some “pennies on the dollar” promoters for, well, over promoting the offer in compromise. Before jumping [...]
Here is an issue to be aware of before filing a Chapter 7 bankruptcy on the IRS: I just completed a Chapter 7 bankruptcy. It was determined to be a no-asset case. A few months later, I got a letter from an IRS Revenue Officer stating that even though the taxes were discharged, they are [...]
If you are having trouble convincing the IRS to release a levy or seizure of your property, bankruptcy may be the solution. The filing of a bankruptcy creates what is known as an automatic stay against your creditors, including the IRS. As its name implies, the automatic stay is indeed automatic – the filing [...]
The best way to get relief from an IRS collection problem is to consider the complete picture before jumping in. A quick way out may be desired, but it is important to look carefully before you leap. Here are three things that I recommend that you carefully consider before taking on an IRS problem: (1) [...]
