Tax returns can be a trap for the unwary in Chapter 13 bankruptcy. Often, bankruptcy debtors do not have their tax returns squared away and filed before filing for bankruptcy. When non-tax creditors are pursuing you, and you need quick relief, often tax returns are the last thing on your mind. However, the need to [...]
Tax Issues In Bankruptcy
If you owe federal tax and fail to pay, the IRS has a federal tax lien on all of your assets. The lien can be a secret and exists even if the IRS has failed to file a Notice of Federal Tax Lien in the public records. This secret lien can take your retirement funds [...]
As April 15 approaches, many people are receiving forms 1099 C from their banks. It’s one last parting shot after bankruptcy and foreclosure. It’s causing panic throughout the nation. Why? My friend Dan Press wrote a nice article about this a few months ago. But now that tax time is approaching, it is not a [...]
According to the 4th Circuit Court of Appeals, if you fail to tell your state taxing authorities after the IRS adjusts your taxable income, it may prevent you from discharging your state taxes in bankruptcy. Most states with personal income taxes base their determination of taxable income on federal taxable income, subject to some additions [...]
This year, it seems that more creditors than ever are sending IRS Form 1099-C to their debtors who have filed bankruptcy or settled debts with them. While in many cases it is unnecessary for the creditor to do this, it is nothing to fear. If a debt is discharged in bankruptcy, it is not treated [...]
