There are only 4 ways of eliminating your IRS debt: 1) Paying it, 2) Waiting until the statute of limitations for collection has expired, 3) Successfully presenting an Offer in Compromise or 4) Discharge in Chapter 7 or Chapter 13 Bankruptcy. Each of these carries positive and negative consequences to you. If you pay it, […]
How to discharge taxes with Bankruptcy
There are 2 types of bankruptcy generally available for most taxpayers: Chapter 7 & Chapter 13. To discharge taxes with a Chapter 7 bankruptcy you must have timely filed the returns. And the tax must be greater than 3 years old and was assessed more than 2 years prior to the filing of the bankruptcy. […]
Late-filed Tax Returns & Bankruptcy – Bad Blood
When you don’t prepare & file your own return and the IRS has evidence that you owe taxes they can assess the tax against you without your agreement under 26 USC ยง 6020(b). This assessment is called a “Substitute for Return” (SFR). But, this is not considered a “return” by you since you didn’t […]