Tax Debt

02 Apr Biggest Tax Time Mistake Can Also Cost You in Bankruptcy

[caption id="attachment_39439" align="alignleft" width="300"]Tax Day is Coming! Tax Day is Coming![/caption] There are a lot of mistakes you can make at tax time. One of the biggest--in fact, it is absolutely the biggest--is to fail to file your return on time. That particular mistake can also cost you if you are in bankruptcy, or if you need to file bankruptcy. The temptation not to file a return may be great. You may know that you owe taxes. You may be unsure that you have all the paperwork needed to file. You may purely hate to deal with numbers. None of those are good excuses, and here's why:
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28 Dec Chapter 12 Farm Bankruptcy Case is Before the Supreme Court

Chapter 12 farm bankruptcy helps family farmers to keep their farms. It allows family farmers to reorganize their finances and operations.Chapter 12 was originally enacted by Congress in 1986, and was made permanent in 2005. It helps the farmer and the banker to sit down and work out alternatives for debt repayment. But according to Senator Charles Grassley, recent IRS actions are threatening family farmers’ ability to properly reorganize in Chapter 12. Grassley authored a provision which is supposed to allow farmers in Chapter 12 to sell some of their property without having to pay capital gains taxes to the IRS in full. The provision, enacted in 2005 as 11 USC 1222(a)(2)(A) was intended to make capital gains taxes into unsecured claims (often paid at only a percentage of the total) rather than priority claims (required to be paid in full). The US Supreme Court heard arguments on November 29th in the case of Hall v. United States. The IRS argued that capital gains taxes created by the sale of property during a farm bankruptcy proceeding are payable in full as an administrativeexpense under the Chapter 12 reorganization plan.
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