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Tax Debt And Bankruptcy


Abe
Rep Points:
Posted on September 23, 2009 at 6:00 am
Can bankruptcy eliminate my tax debt?

Chairman
Rep Points:
Posted on September 23, 2009 at 6:03 am
Can bankruptcy eliminate my tax debt?

Possibly, that is if  these taxes are income taxes, if it wasn't committed via fraud, and if it's at least three years old.

rasputin
Rep Points:
Posted on September 23, 2009 at 6:06 am
Can bankruptcy eliminate my tax debt?

In addition bankruptcy can eliminate that tax debt,  if the tax return was filed two years before filing for bankruptcy and if the IRS  have already assessed the income tax debt at least 240 days before your filing bankruptcy.

iamfyodor
Rep Points:
Posted on September 23, 2009 at 6:09 am
Filing bankruptcy should not be your first option in eliminating your tax debt. Why not visit this page first http://www.irs.gov/businesses/small/article/0,,id=108347,00.html

Learn about the IRS Offer in Compromise before filing bankruptcy.

Karess
Rep Points:
moderator
Posted on October 8, 2009 at 7:12 pm
Applying for an Offer in Compromise does not always guarantee success. Only 2% of all taxpayers who apply for this arrangement are approved by the IRS. The organization also has very stringent qualifications in terms of being eligible for this payment plan.

Hope this helps to address your concern on tax debt and bankruptcy.

sarah walker
Rep Points:
Posted on October 11, 2009 at 7:56 pm
how can a consumer apply for an offer in compromise anyways?

tax debt and bankruptcy. they don't sound like a good combination to me.

WonderGurl
Rep Points:
Posted on October 12, 2009 at 2:14 am
To be able to qualify for an offer in compromise in reference to your tax debt and bankruptcy:

- The debt has to be at least $10k or less
- You've had a good payment history the past five years
- You've never previously applied for an offer in compromise in the past.

LallyPop
Rep Points:
Posted on October 14, 2009 at 2:07 am
You can also apply for an offer in compromise if:

- the IRS can vouch for your insolvency
- you agree to pay the full amount of the taxes that you owe within three years.

However, I'd like to echo was stated earlier: tax debt and bankruptcy should not be mutually exclusive with each other. You can get your tax debt taken care of without filing for bankruptcy.

If you'd like to learn more, you can fill out the form on the top of this page for debt help. You'll be matched with a qualified provider for free, so that won't hurt.

jill
Rep Points:
Posted on October 14, 2009 at 3:01 am
Tax debt and bankruptcy?

Bankruptcy might not help at all. There are professional companies now though that can help the consumers with their tax problems-they are like debt settlement companies. I just don't know how much they would cost the consumer or if it's wise to come to them for help at all..

Isabel
Rep Points:
Posted on October 14, 2009 at 3:09 am
I was just reading an article about that which basically says that all the professionals can actually do is prepare the consumers financial statement:

"--who make their living as tax professionals, there is surprisingly little they can do in the OIC process, beyond helping a taxpayer to prepare their financial statement and making a few phone calls. That means firms specializing almost exclusively in settlements should raise immediate red flags, says Linfield, who cautions that there is "no secret recipe here."
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