June 20, 2019

Settle Your IRS Debts for Pennies on the Dollar

​The tax return is filed and the taxpayer cannot pay the taxes. Then comes a letter from the IRS demanding payment. The taxpayer sees a nifty ad in the newspaper or on TV screaming "Settle your tax debt for pennies on the dollar!"  Should the taxpayer hold out hope for salvation? This is almost always a promise of salvation provided by unsavory operators who prey on tardy taxpayers … [Read more...]

Doesn’t the IRS Say My Debt Forgiveness Income Can’t Be Taxed?

All this talk about mortgage principal reduction and mortgage modification in the general press is incomplete and often confusing. People searching for answers can even find that information on government websites is too general for their specific needs. Take, for example, debt forgiveness income. This IRS page on The Mortgage Forgiveness Debt Relief Act and Debt Cancellation is helpful. Is … [Read more...]

Liability for Unpaid Taxes: Five Remedies, Including Bankruptcy

Often, new client calls to my office are prompted by the unpleasant discovery that a tax authority wiped out their bank accounts to pay back taxes. Callers want to know if there is anything they can do to get their money back (generally, it’s gone for good) and if bankruptcy is an option for their larger financial troubles. Five options for taxpayers who are unable to pay their taxes in full and … [Read more...]

Income Tax and Bankruptcy

We find that many people in financial distress owe taxes in addition to credit card bills and student loans and business debts. Before you succumb to an offer by a so-called tax specialist, educate yourself. MYTH: Income taxes are never dischargeable in a bankruptcy case TRUTH: Income taxes may be dischargeable in a bankruptcy case. Dischargeability depends on a number of factors, including, but … [Read more...]