I owe over 30,000 in past due income taxes, greater than 3 years ago, and my last year is paid in full. Is bankruptcy an option?
Does anyone have any experience filing bankruptcy for debt to the IRS?
September 15, 2011 By 6 Comments
I owe over 30,000 in past due income taxes, greater than 3 years ago, and my last year is paid in full. Is bankruptcy an option?
Federal Tax debts are not forgiven in Bankruptcy, though while you are in bankruptcy collection efforts are suspended. Interest and penalties continue to accrue. You need to notify the IRS that you are in Bankruptcy so the hold can be put on your account. Once the Bankruptcy is discharged you need to contact the IRS and let them know that the Bankruptcy is discharged.
1-800-829-1040
http://www.irs.gov/publications/p908/ar02.html
If you are looking to possibly reduce your tax debt you can submit an Offer In Compromise
Form 656
No. Any government debt is never dismissable. Google IRS debt and work with a company that can reduce the amount you owe. JK Harris is one such company.
While I don’t have experience in this, I would strongly advise you to seek legal counsel on something as important as this, and if you don’t have extra cash for lawyers…and who does…at least try legal aid…seriously…please get legal help. And I really wish you the best of luck. My family went through an experience with this when I was a kid….
Check this website:
http://www.wwwebtax.com/audits/bankruptcy_code.htm
But also call a tax attorney and discuss the matter. It’s possible but you don’t say enough to be able to ascertain if it is in your case.
No, it’s not an option. Bankruptcy will discharge most debts, except for taxes.
However if you have a significant amount of unsecured debt, bankruptcy will clear that making it easier to clear your tax debt on your own.
for your doubt i can suggest you with some online tax filing sites. here are some go for them.
you may be interested in some of the Tax Prep Deals I found that saves some money on tax prep services online.
all the best.