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ARTICLES
Attorneys Tax Group has posted these Articles about topics important to Bankruptcy and Tax Problem Resolution Attorneys. Click on the underlined title to view the article ________________________________________________
BANKRUPTCY
JUDGE ORDERS IRS TO CONSIDER DEBTOR'S IRS must consider Chapter 11 debtors Offer in Compromise, even though he is in Bankruptcy. Read the decisions and the implications this decision might create for Debtors in Chapter 13 and Chapter 11. Click on the title to view the a detailed analysis and the full Opinion. UPDATE!! A second Bankruptcy Court has now ruled that the IRS must consider a Chapter 13 Debtor's Offer in Compromise, while he is in Bankruptcy!
These holdings have great potential for Debtors with both tax and
debt problems, who would otherwise be unable to qualify for
Chapter 13, because of too much priority or secured debt.
Click on title to read full article and review the Opinions. LITIGATING
TAX LIABILITY IN BANKRUPTCY COURT IRS
CONCEDES IT HAS NO SECURITY IN ERISA PLANS In many of the Bankruptcy cases we file, the clients have had a tax lien filed against them. After the Bankruptcy is completed, the Tax Liens are often not released. They will remain until something triggers the IRS to release the lien. This is complicated when the Debtor has assets, particularly if the Lien is for more than the value of the assets. In Chapter 7, the lien is not stripped down to the value of the collateral. The lien remains, for its full amount on the debtor's assets until it is released. (Dewsnup v. Timm 112 S.Ct. 773.) To review our full analysis of Tax Liens in Bankruptcy, please click on the title to this article. OBTAINING AND USING IRS TRANSCRIPTS In our office, we order an IRS transcript for any client about to file Bankruptcy who has taxes owing. We have found the transcripts to be invaluable in doing an analysis of whether the taxes are subject to discharge in Bankruptcy. Click on the title to this article to read about transcripts. DISCHARGE OF TAXES WITH UNFILED RETURNS Many times clients come into our office with a number of years of unfiled tax returns. Our task is to determine whether they will be subject to discharge. For Chapter 7 they are not able to be discharged, unless the client has filed their returns. Be careful if the IRS has filed a return for them (called a Substitute for Return or SFR). If the IRS has filed a SFR, the tax is not subject to discharge. If the debtor has filed a tax return after the filing of an SFR, there is a split of authority as to whether the taxes are subject to discharge. Chapter 13 Provides a completely different set of rules. Discharging taxes with unfiled returns is much easier in Chapter 13 than in Chapter 7. The "Super Discharge" allows taxes with unfiled returns to be discharged if they meet certain criteria. They must be three years from when the return became due, including extensions. They must have been assessed over 240 days. For a more detailed analysis of Bankruptcy Discharge of taxes with unfiled Returns, click on the title to this article. Attorneys as Debt Relief Agencies
A Bankruptcy Judge has
recently written an opinion that concludes that Attorneys or Law
Firms are not "Debt Relief Agencies". This Opinion by
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