Your Questions About Eliminate Debts Irs

Donald asks…

If I owe the IRS money, will filling for bankrupcy eliminate that debt?

John answers:

Nope. The US Government is completely exempt from any bankruptcy proceedings. You can’t claim student loans on there either.

James asks…

Is it possible to get relief from IRS debt without hiring an expensive firm? Can it be done by the individual?

2001 taxes not paid. X wife did not file. H&R Block processed taxes. X wife did not send them in. During this time was having bladder and prostate removed due to cancer. Taxes were the last thing on my mind. Have in the mean time, divorced, the then wife and am strapped with $40K worth of IRS debt. Interest is compounding. How in a lifetime could anyone ever pay this debt off? Do I have to refinance my house to eliminate this debt? Can I fight this on my own without the help of any firm that charges no less than $3K and can give no guarantees? Will be glad to send a letter to my Congressman, State Representative, etc. for any advice they can give. Any suggestions?

John answers:

It is possible to negotiate with the government to get your tax debt reduced. I suspect this will only happen if it is realistic to expect that the debt won’t be paid at all otherwise. A personal accountant could probably help for under $1K.

Susan asks…

When a bankruptcy discharged debts should a bank send a IRS 1099 as debt forgiven and show it as income?

My company filed for and was discharged in bankruptcy in Aug 2006. Bank of America sent an IRS 1099 showing they forgave the debt in Aug of 2007. They showed an amount of over $8,000.00 as income due to the “forgiveness”. I called them and they refused to correct the 1099 and said it was my problem not their’s and advised that I just throw it away since the company no longer exists and I will NOT be filing a return on it. The Company was an “S Corp” so when it existed the money flowed through to me personally. Should B of A have sent this a year late? Should I just throw it away (doen’t sound smart to me)? Is there an IRS form that I can fill out to correct the error if there was one. Didn’t bankruptcy discharge and eliminate this debt without them forgiving it? By the way B of A continued to send collection notices many times after the discharge, so this seems to be a stabdard with them.

John answers:

The bank was correct in sending you a 1099-C. They cancelled the debt and you were the person not paying it back.

The bank was incorrect in telling you to throw the 1099-C away. When you file your tax return, you will postpone the 1099-C cancellation of debt income by filing a form 982. If you have remaining assets the form has you write them down in value. When you sell these at a later date, you may have taxable ordinary income then.

If you total your remaining assets (not only business, but all personal ones as well) by their book value and compare that to your total liabilities, you only reduce the book value to the point it equals the liabilities. Any further COD is permanently eliminated.

Betty asks…

Is my IRS debt resolved via a tax lien if my house is foreclosed on?

I owe $30K to the IRS and they have filed a tax lien in my property, which will likely be foreclosed on in the next few weeks? Supposedly, the lien is paid off during the foreclosure sale (or subsequent sale), so would I be off the hook for my debt? Can losing my house to foreclosure really eliminate $30K of debt?
Pleas enote I am in California and they don’t have deficiency jdugements here. Everything I have read has said that tax liens and mechanics liens move into first position regardless of the amount owed.

John answers:

Not only will the tax lien not be discharged, you may have income from discharge of indebtedness.

David asks…

If someone gets sent to prison for not paying their taxes, does the debt get eliminated after they get out?

In Ritchard Hatch’s case, he was sent to prison for 51 months for not paying his taxes on his 1million dollars he won on the Survivor Reality Show. Does his debt to the IRS get wiped off because he has served the 51 months of his sentence? If not, can he get sent back to prison for failing to pay the initial amount that he as previously sent to prison for?

John answers:

Imprisonment is the penalty for the commission of the crime. Thus, when it was already served, the debt is erased.

Powered by Yahoo! Answers

This entry was posted in Uncategorized. Bookmark the permalink.

14 Responses to Your Questions About Eliminate Debts Irs

  1. Pingback: Your Questions About Eliminate Debts Irs « homeloandebt

  2. vps hosting says:

    Outstanding post, I believe people should acquire a lot from this site its very user genial . virtual private server | unmetered vps |

  3. you’ve got a terrific weblog here! would you like to make some invite posts on my blog?

  4. Not a bad post,in fact really fine.but I really miss that you didn’t express your opinion in detail, but its ok you just have different approach to writing.

  5. Actually after reading this article, i am against you on this. I do not blame you,and am actually thankful for bringing this up on your blog. I am just conjuring up a dialogue here,no hard feelings.

  6. seo india says:

    Actually after reading this article, i am against you on this. I do not blame you,and am actually thankful for bringing this up on your blog. I am just conjuring up a dialogue here,no hard feelings.

  7. Great points altogether, personally I’m gonna have to bookmark this and come back to it. I’m curious if you have any follow ups to this post?

  8. I have seen that car loans providers know the vehicles which are susceptible to accidents and other risks. In addition, they know what type of cars are given to higher risk as well as higher risk they may have the higher the particular premium price. Understanding the uncomplicated basics regarding car loans will allow you to choose the right types of loans policy that will take care of your family needs in case you become involved in an accident. Appreciate your sharing the ideas on the blog.

  9. jingxiamnh says:

    This was a seriously incredibly very good submit. In theory I’d prefer to write like this also getting time and actual effort to make a fantastic piece of writing but what can I say I procrastinate alot and by no means seem to obtain a little something done.

  10. Very good written information. It will be helpful to anybody who usess it, as well as myself. Keep up the good work – looking forward to more posts.

  11. “What the world really needs is more love and less paper work.” ~ Pearl Bailey

  12. Pingback: Google

  13. Your website has inspired me to change the way I run my site. I want to let you know I appreciate your great work.

  14. Good post. I be taught one thing more challenging on completely different blogs everyday. It would always be stimulating to learn content material from different writers and practice a bit one thing from their store. I’d choose to make use of some with the content material on my weblog whether or not you don’t mind. Natually I’ll provide you with a link on your web blog. Thanks for sharing.

Comments are closed.