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 [...]
Revenue Officers
Here is a practical question from a reader about a concern of everyday living – IRS seizure of your car to pay your tax debt. If I own a free and clear vehicle that is ten years old and has 115k miles on it, and it is worth 4,000. Will it be seized if the [...]
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 [...]
My response to a reader’s question about what happens to your bank account after the IRS hits it with a levy. The IRS has levied my bank account and there was not enough funds to cover the total levy. Will the IRS levy all future deposits until it is satisfied or can I continue to [...]
When you make a payment to the IRS, it will be automatically applied to your account in a manner that is in the IRS’s best interest. But what is best for the IRS in handling your payment can be different from what is best for you. In some situations, it is in your best interest [...]
My clients with IRS collection problem come to me with different ideas about what will happen to them because they did not pay their taxes. Is the IRS going to show up one day and seize my house? Levy on my income so I cannot provide for my family? Shut down my business? When do [...]
