All recent indications are that the IRS is plowing ahead in its collection efforts under a weakening economy. Revenue Officers continue to push hard, and there are no signs that Automated Collection Service has backed off its levy and lien filings. The unfortunate result of this pressure is that more and more clients are turning to [...]
Bankruptcy and the IRS
With new clients, I spend time discussing the options for obtaining a fresh start from IRS problems. The consultation most always involves making the client aware of the pros and cons of resolution by compromise, and by bankruptcy. In that spirit, here then is the first of a continuing series on the use of [...]
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 to include extensions of time to file in calculating the due date of the return, especially starting in 2009. [...]
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 from the date it puts the liability on its books. When the 10 years is up, the tax is cleared [...]
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 [...]
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 [...]
