How to Discharge Tax Debt Explained By Ex-IRS Attorneys
Our tax bankruptcy attorneys are experts in taxing agency practice and procedure and the interrelationship between federal and state tax laws and the US Bankruptcy Code. In each case, they prepare a comprehensive Tax Dischargeability Report, reviewing and analyzing each tax claim and all events related to that tax claim. This allows us to achieve…
Tax Lawyer or CPA? Choosing the Right Professional
Before deciding between a Certified Public Accountant (CPA) or a tax attorney, it’s crucial to understand your specific needs. If you require services like tax preparation, reporting, bookkeeping, accounting, or general tax and business advice, a CPA might be a more cost-effective choice. However, if your situation involves a tax dispute or an understanding of…
All About Filing Bankruptcy on State Tax Debt
The US Bankruptcy Code does not differentiate between Federal and state tax claims. Instead, the nature and type of tax claim dictate its treatment in a bankruptcy case. We will outline the terms in which state income and other state taxes are assessed, within this article. For state income tax claims, these rules apply: State…
All About Including IRS Debt in Chapter 7 Bankruptcy
Before considering Chapter 7 as a means of wiping out your tax debt, you must review each tax claim with a qualified Tax-Bankruptcy attorney. The last thing you want to do is file a bankruptcy and later discover that your tax debt was not eliminated. If done right, the bankruptcy filing can be an effective…
Overpayments and the timing of the bankruptcy filing – Debtor Beware!
A popular planning objective for taxpayer-debtors who are anticipating a bankruptcy filing while expecting a refund, is to make an election to apply the overpayment to a subsequent year. A taxpayer can elect to have an overpayment refunded or applied to the subsequent year’s estimated tax payment. This election, once made, is generally irrevocable (Sec.…
Can Chapter 7 Bankruptcy Discharge State Sales Taxes?
Chapter 7, colloquially known as “straight bankruptcy,” is the “operative” chapter of the Bankruptcy Code that normally governs liquidation of a debtor. Liquidation is a form of relief afforded by bankruptcy laws that involves the collection, liquidation and distribution of the nonexempt property of the debtor and culminates, if the debtor is an individual, in…
Can Tax Advice on TikTok constitute “Reasonable Cause”?
As social media continues to grow with new platforms such as TikTok emerging onto the scene, many purported tax advisors are finding a market with large demand for free tax advice. Given the ease of distributing information through this platform and the need for tax advice from laypersons who may not have the financial means…
The 2019 Global Extension to File Returns – Don’t let it Impact your Bankruptcy Discharge
Generally, in order to convert an income tax claim from priority status to a general unsecured claim eligible for discharge in bankruptcy, an individual must satisfy the three-year rule. That is, the filing of bankruptcy must occur more than three years from when the tax was due, including any extensions. If the debtor timely applied…
Reliance of tax advice as a defense to the substantial underpayment penalty.
Taxpayers are eligible for relief when they rely on actual advice from a tax advisor, i.e. professional judgment or analysis of a tax advisor, as opposed to “tax preparation” or clerical tasks associated with a tax advisor’s duties. However, if the tax advisor simply transcribed figures provided by you in preparing a tax return and…
The IRS is Modernizing – What to expect?
The Internal Revenue Service recently receive a much needed infusion to the tune of nearly $80 billion dollars under the Inflation Reduction Act (IRA) and earmarked nearly 5 billion of that amount for “business systems modernization.” With these funds, it is expected that the IRS will expand its digital services, hopefully beyond their current Taxpayer…
