Sometimes my clients don’t believe me when I tell them they must disclose all their assets when going through Chapter 7 bankruptcy (or any other bankruptcy). With that in mind, maybe Sebastian, my Feline Paralegal, can explain things a bit better Read more »
There are hundreds of strategies for handling IRS issues. But not all strategies are as effective as others.
A car-repair owner got audited and brought his tax-return preparer (Jim) to handle the audit. The preparer said to give the IRS as little information as possible . “The IRS won’t want to go to trial, and they’ll cave in at the last minute,” he said. But something didn’t seem right Read more »
Tax debt is dischargeable in bankruptcy. However, unlike many other nondischargeable debts (fraud, malicious tort, etc.), tax debt may actually remain in force with no further word from the court. Huh? The IRS or the FTB could come back five years after the discharge and start collecting on taxes Read more »
Business owners with payroll tax debt often ask me why the IRS won’t lift its levy or lien. After all, these clients argue, I just need a bit of free cash to invest back into my business, to make the money to pay what I owe. If the IRS cripples my business with liens or levies, then I can’t make the money to repay them. So, why doesn’t the IRS act more like my business partner, let me continue to operate, and make the money to pay them back Read more »
In chapter 7 bankruptcy, everything you own and owe is briefly transferred to a bankruptcy Trustee, who can then use your assets to pay your debts. If you have more debts than assets, then those debts are “discharged” or wiped out (there are exceptions for some debts… Read more »
You file bankruptcy to get rid of debts you can’t afford to pay and to get the fresh financial start in life that you so desperately need. But not all debts can be wiped out in your bankruptcy. Read more »
Here’s something I discuss on the landing page of my website, because I think it’s that important: I’m assertive but not antagonistic. Okay. So what? Some clients are so angry with the IRS they want to use me primarily for revenge, even if their case would have a better outcome if we approached the adversary calmly Read more »
A potential client called me last week for help in dealing with the IRS. He owes taxes for 1992 to 1996. Had he filed the returns on time? Yes. Had he filed bankruptcy in the meantime? No. Had he filed an offer in compromise? No. Has he heard anything from the IRS in the last three years? No, but he thought that was because he had moved Read more »
Since the fall, I have seen a big uptick in desperate people calling me for tax or bankruptcy help. What kind of desperation? These people have been either on the IRS’s radar, or been having debt problems, for many years and then the crisis hits: the IRS puts a lien on a house, or a creditor gets a default judgment and the sheriff Read more »
It’s possible to discharge (have tax debt wiped out) most federal taxes in bankruptcy. There are exceptions, however. Many of the times when taxes aren’t dischargeable in bankruptcy are very Read more »
