Is a taxpayer who is insolvent, and about ready to file bankruptcy, in 2009, responsible for income taxes due on the 2008 income tax return? He will lose everything, except the shirt on his back, if he files bankruptcy. In no way can he afford to pay his bill to the IRS.
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I am not an expert in this but I think IRS debt cannot be dismissed like that. Besides this "poor" guy must have had some nice income to even have a maybe outraging tax bill. -
This question should be answered by a competent bankruptcy attorney who has knowledge of all the facts pertaining to this individual's filing under Federal bankruptcy law.Originally posted by John Jack View PostComment
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Taxes in bankruptcy
That may be hard to find, a competent attorney that is. I just had a client come in who file a BK thinking his taxes would be discharged, nope, didn't meet the time limits for discharge. His attorney didn't even mention the time limits and filed the petition for BK three months too early to discharge the taxes.Originally posted by jimmcg View Post
The rules for taxes are:
The due date for filing a tax return is at least three years ago.
The tax return was filed at least two years ago.
The tax assessment is at least 240 days old.
The tax return was not fraudulent.
The taxpayer is not guilty of tax evasion.
You can advise the client of these limits which it doesn't sound like he will meet for the 2008 taxes.
Daniel"A man that holds a cat by the tail learns something he can learn no other way." - Mark TwainComment
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