Archive for the ‘Discharging Taxes in Bankruptcy’ Category

IRS Question: Can I Erase Tax Debt in Bankruptcy?

Wednesday, May 15th, 2013

Question: I am filing bankruptcy to get out from underneath debt brought on by some bad financial decisions. Can I discharge in bankruptcy the IRS back taxes I owe for tax years 2008 and 2009 that amount to roughly $25,000? I am struggling financially to pay off all the debt I incurred in this mess but am particularly overwhelmed with the tax debt. Do I have any chance at tax
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Tax Relief-Bankruptcy and Tax Debt

Tuesday, May 15th, 2012

With the recession in its fourth year, financially distressed consumers are turning to bankruptcy as a means to wipe their financial slate clean including getting rid of their tax debt. However, what many do not realize is that not all tax issues are discharged in bankruptcy. A Bloomberg BusinessWeek article entitled Court says farmers must pay bankruptcy tax reported on a recent Supreme Court ruling that firmly stipulated there be
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IRS Bankruptcy-Five Tax Relief Options for Back Taxes

Tuesday, March 6th, 2012

With the economy still sputtering, many tax stressed people teetering on the edge of IRS bankruptcy enter our offices wanting to know if their IRS tax debt could be wiped away with bankruptcy protection. While in some cases back taxes can be discharged (personal income tax), in most cases, they cannot. However,the good news is that taxpayers in this situation have options. Here are the five simple tax relief options
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Need Tax Relief? Do Your Homework Before Hiring A Specialist

Monday, August 1st, 2011

The reason I got into this business was to help people with their tax issues. Our clients found that dealing with the IRS directly often made their situation harder to resolve and more difficult to understand.  The nature of tax problems is inherently complicated and we sought to simplify that process by providing expert guidance that resulted in getting the best possible tax settlement on behalf of our clients.
Tax Resolution
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Tax Relief FAQ: What Are Your Options if You Cannot Discharge Your Back Taxes and IRS Debt in Bankruptcy?

Tuesday, October 5th, 2010

Due to the harsh reality of the current economy, more Americans are filing for bankruptcy. Although there may be a certain negative connotation attached to filing for bankruptcy, it is also an effective way for many people to get fresh new starts.
Filing for bankruptcy is one way in which you can discharge some of your tax liabilities. In fact, many IRS taxes, penalties and interest qualify for complete 100% discharge
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Nation’s Leading Tax Relief Firm Helps Americans Discharge IRS Debt in Bankruptcy

Sunday, July 25th, 2010

In the midst of the recent economic meltdown, a record number of Americans filed for bankruptcy protection last year. While bankruptcy may carry a stigma, it can also provide a fresh start free from creditors as well as IRS tax debt.
Taxpayers who owe back taxes and lack the assets to pay them off  can potentially qualify for IRS tax relief. However, it is critical that taxpayers consult a specialized tax
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IRS Relief News: How to Determine if Bankruptcy is a Viable Tax Relief Option for Resolving IRS Back Taxes

Monday, April 19th, 2010

With a record number of bankruptcies filed in the last year it’s important for taxpayers to know whether it’s possible to discharge taxes in bankruptcy. If you qualify for discharging your IRS tax debt through bankruptcy, you have an opportunity to achieve permanent tax relief and a fresh start. Find out more about eliminating your back taxes with these important tax relief bankruptcy tips.
Most taxpayers don’t realize that IRS tax
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Tax Help on the Big Biz Show: How to Know if Bankruptcy is a Viable Tax Relief Option

Wednesday, March 31st, 2010

Russ and Sully with the Big Biz Show welcomed back Brian Compton, President of Tax Resolution Services, for more tax relief wisdom – this time about IRS debt and bankruptcy. People are forced to file bankruptcy for different reasons. And I know a lot of folks filed bankruptcy last year because they lost their jobs or they lost their pension.
Bankruptcy is really designed to give people a fresh start, people
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Tax Relief Options Available to Americans Who Fail to File Legally Required Tax Returns

Wednesday, March 24th, 2010

As unemployment continues to rise and many Americans struggle to pay their monthly bills, less people are expected to file their taxes by the April 15th deadline, including those unable to pay their IRS bill.
H&R Block recently announced that year-to-date tax returns prepared have fallen by 8.2% from the prior year. While some taxpayers are opting to prepare their taxes themselves or using tax preparation software to save on fees,
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Don’t Miss Tax Help Tips on Bankruptcy From Nation’s Leading Tax Expert Brian Compton on the Big Biz Show-Thursday, March 18th at 1:40pm PST

Tuesday, March 16th, 2010

Did you know that the IRS does not like to talk about the use of bankruptcy to remove tax liabilities, but the reality is that many IRS taxes, penalties and interest do qualify for complete 100% discharge in bankruptcy?
The IRS is not able to collect on expired back taxes. The IRS has 10 years from the date of assessment (usually close to the filing date) to collect back taxes.
Don’t miss
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Discharging Taxes and Penalties in Bankruptcy: How Delinquent Tax Returns Can Affect Your Eligibility

Tuesday, July 7th, 2009

When taxpayers file for bankruptcy, some taxes and penalties may be discharged–giving people a chance of obtaining tax relief.  When someone files for bankruptcy, the “automatic stay” stops taxing authorities from collection actions including seizures and wage garnishments. The extent of the tax relief from bankruptcy may depend on a few factors including: the kind of tax involved, the age of the tax, whether a return was filed, and the
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Learn How to File For Bankruptcy Correctly to Help Solve Tax Problems and Reduce IRS Debt

Thursday, June 11th, 2009

In the current economy with people losing their jobs left and right, the one word we have not heard as frequently as “recession” is “bankruptcy.” There are more mentions of foreclosures in the aftermath of the credit crash than mentions of people filing for personal bankruptcies. When I was on the LA Talk Radio with TJ McCormack last month, we chatted about the possible boons of filing for bankruptcy and
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A Couple’s Canceled Credit Card Debt is Forgiven and Recognized as Taxable Income

Tuesday, May 19th, 2009

This is the second tax case I’m blogging about today that relates to taxability of canceled debt.
When a lender cannot collect debt and subsequently cancels the debt (which we are seeing alot of in the form of foreclosures in this struggling economy) -  the IRS considers the canceled debt as taxable income.
The IRS offers guidelines for exceptions or exclusions in which canceled debts are not taxable.
Additionally, the IRS may also
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Guide to Tax Resolution: Solving IRS Problems

Friday, January 4th, 2008

Continuing education courses for tax attorneys and CPA’s.
Tax resolution means providing solutions to businesses and individuals alike who find themselves in trouble with the IRS. This guide can help hundreds of individuals and business with their IRS Collection Problems. To resolve tax matters with the IRS, the IRS’ Offer in Compromise (OIC) program encourages delinquent taxpayers to settle their back taxes – often for pennies on the dollar. The
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Tax Resolution Options and Alternatives

Friday, December 28th, 2007


This is a key question which must be addressed. Left to only the IRS or the taxpayer, this question is usually not fully or adequately explored.
There are 10 options commonly employed to resolve a tax collection matter (see full explanations below):

Full pay the tax owed
File unfiled returns to replace Substitute for Returns
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