Can Bankruptcy Remove My Tax Obligations?
Posted on
June 9, 2009
at
8:03 pm
How can i eliminate the back taxes that i owe? I owe a lot to the IRS and i'm ucrrently out of a job, i think i need to file for bankruptcy at this point for everything to be fixed.
Posted on
June 9, 2009
at
9:34 pm
Filing for bankruptcy allows certain taxes to discharged, but only if they adhere to the following conditions:1. If these taxes are income taxes.2. If you did not commit fraud or willful evasion of the payments.3. If the debt is at least three years old.4. If a tax return was filed for that specific debt two years prior to filing for bankruptcy.5. If you pass the "240 day rule," which means that the IRS should have assessed the income tax debt at least 240 days prior to your filing for bankruptcy.
Posted on
June 9, 2009
at
10:15 pm
Does this apply to Chaper 7 or Chapter 13? Or both?
Posted on
June 10, 2009
at
12:06 am
Tax Free, it applies for both. In fact, any form of tax debt that does not fall under the above qualifications is considered a "priority tax," and is 100% never dischargeable. Younger tax debts--if you can call it that, are examples, as well as any tax debt that is assessed within 240 days before the bankruptcy case was filed. It is a must for you to pay these in full.
Posted on
June 10, 2009
at
1:11 am
You can also try to set up an Installment Agreement with the IRS. Pretty much you'll have the chance to pay off your back taxes in a 3-5 year period. There are certain rules that the IRS sets depending on the debt amount. You can find them here: http://www.irs.gov/businesses/small/article/0,,id=108347,00.html
Posted on
June 10, 2009
at
1:42 am
i got some questions, too. are there fees that need to be paid when i apply for the installment payment?how can i set up an installment payment? whhat modes of payment do they accept?and what happens if i miss a payment?thx
Posted on
June 10, 2009
at
1:56 am
The regular set-up fee is $105. Fifty-dollars, on the other hand, is charged for payments that are directly deducted from a bank account. Low-income taxpayers who wish to apply for the Installment Agreement are charged at $43. The guidelines to determine whether or not you qualify for "low-income" levels are determined by the Dept of Health and Human Services poverty guidelines.If you also want to reinstate the agreement, you also have to shell out $45
Posted on
June 10, 2009
at
2:20 am
Red ranger, it's of utmost importance that your payments are made on time! You need to contact them ASAP in the event that a payment would be missed. You might end up getting defaulted on your payments. When that happens, the IRS may file a Notice of Federal Tax Lien against you, and possibly an IRS levy action. These can have a negative effect on your credit report, and may cause more difficulty for you.
Posted on
June 10, 2009
at
2:39 am
Red Ranger, the IRS accepts--and highly recommends--payments that are either electronic transfers from your checking account, or payroll deductions that can be arranged with your employer. Electronic payments allow for a more efficient way of taking care of your obligations and lessens the risk of theft and potential defaulting.Other modes of payment also include paying via credit card, personal or business check, MO, cashier's check, and certified funds. They also accept cash payments, and they discourage consumers to send these payments via mail.
Posted on
June 10, 2009
at
2:58 am
Hey, Taxfree, are you really definite with the bankruptcy, anyhow? I personally don't think it's a very good option if you ask me. There are still available debt relief options that are open for you. I'm sorry to hear about your situation and I know you're trying to get back on your feet. What you can do, too, is check out DestroyDebt.Com, fill out a form there, and you'll be in touch with a qualified provider.
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