Comments on: Are IRS taxes dischargeable in bankruptcy?

By: Scott

Scott — Sun, 06 Mar 2011 17:58:27 +0000

Darrin,
I like the video and comments previously posted. I would like for you to do a \"timing analysis\" for my tax audit. I am filing for a Chapter 7 bankruptcy, and my Attorney is one of those that say: \"Let\'s include it and see what they will say\" So, after reading some of the comments and getting out my running shoes, what should I do next?
here is my scenario: (California) I recently had a tax audit from 2008 and it was determined I owe $14,000, also the State wants 3,200 back. Can I include both (Federal and State taxes) in my Chapter 7 bankrupcy this year?

My current attorney said my taxes have to be assessed for 3 years, and she said it counts from the day I was \"IRS Audited\"
I said: \"That\'s funny, then why does it appear like the IRS \"assessed\" my taxes back to 2008 and charged me interest and penalties until NOW!

Am I right to conclude that my taxes were \"assessed in 2008 and can be included in my bankrupcy? Do I have to meet all 3 rules as you explained, or just the three year rule?

I would like your official analysis services, but want to know if it\'s worth fighting for, if I only met the three year rule, but 240 days have not passed since the IRS Audit.

Thank-you for your help

By: Darrin Mish

Darrin Mish — Tue, 08 Feb 2011 19:21:02 +0000

I'm sorry but I can't give specific legal advice in this forum. I suggest you find legal help.

By: Darrin Mish

Darrin Mish — Tue, 08 Feb 2011 19:18:44 +0000

Sounds good to me. You should give it a try.

By: Cathy

Cathy — Wed, 17 Nov 2010 17:03:34 +0000

I paid over $25,00 in penalties for tax years 2005-2008. I was a defendent in a civil suit and the plaintiff (a state agency) improperly slowed down and then stopped payments to my company for work we had performed. This created a huge cash flow problem, and ultimately a bankruptcy. I did ultimately pay all taxes, penalties, and interest on payment plans. Will IRS consider this reasonable cause to refund the penalties?

By: jackie

jackie — Fri, 05 Nov 2010 23:16:50 +0000

My husband died in 1998. He had taken his pension earlier due to losing his job. I filed in 1998 and 1999 and 2000. He owed the IRS . 12,000

They took some money from my social security payments. I did not work due to small children which 1 is disabled. I was not required to file. Through the years, I have paid the IRS some money. i filed bankruptcy in 2002. My lawyer said I could not include the IRS.
At this time I owe them 35,000 I just got a job a year ago and worked part time. The IRS now wants to garnish my pay. What can I do.?
Can I file for bankruptcy?

By: Darrin Mish

Darrin Mish — Tue, 31 Aug 2010 18:05:03 +0000

It starts after you file an actual return.

By: Erniec

Erniec — Tue, 31 Aug 2010 17:48:03 +0000

I did not file a return for 2006. The IRS filed a substitute return for the 2006 tax year. Does the 2yr filed rule start with the substitute filing date of nov 2008 or does it start when I file my actual return which is this month.

By: Darrin Mish

Darrin Mish — Fri, 09 Jul 2010 19:03:41 +0000

You certainly could set up an installment agreement prior to a bankruptcy. Once the installment agreement is approved they will cease collection actions allowing you the time to properly prepare your tax bankruptcy.

By: mike

mike — Wed, 07 Jul 2010 17:29:16 +0000

if i have a tax liability and am considering bankruptcy, should i go ahead and set up a payment plan with the IRS to get them off my back temporarily? and if i do this, can i include the tax liability if i choose to file?

By: hugh mobley

hugh mobley — Sun, 06 Jun 2010 16:42:55 +0000

With my research I knew they could be wrong, however, with the people I have talked to at the IRS, they ALL have different opinions, and wrong ones. thank you