If I owe the IRS money, will filling for bankrupcy eliminate that debt?
Nope. The US Government is completely exempt from any bankruptcy proceedings. You can’t claim student loans on there either.
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?
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.
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.
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.
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.
Not only will the tax lien not be discharged, you may have income from discharge of indebtedness.
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?
Imprisonment is the penalty for the commission of the crime. Thus, when it was already served, the debt is erased.
Powered by Yahoo! Answers