Wednesday, December 12, 2007

Bankruptcy and Taxes

Needing IRS Help?Most people are under the assumption that because you have filed Chapter 11 or 13 for Bankruptcy, means that your tax liability will dissipate. Filing Chapter 7 means having total liquidation of your assett's. Under the new compliance rules of the Internal Revenue Service, it is virtually impossible to file a Chapter 7.For example, in the state of NC, your total income (Household of 4) cannot be exceed $54,459.00. Total income for a Household of 2 would be $29,000.
When the IRS files a lien prior to bankruptcy, the lien survives any bankruptcy and attaches to the clients property.The IRS is voided from filing liens during bankruptcy proceedings. However, the IRS will file a lien when:1.there is a valid tax assessment is made
2.client is given notice and demand for payment

How long does a lien stay in effect ? As long as the (CSED) Collection Statute Expiration Date- takes 10 years to expire from the date of the assessed tax.Although the CSED has expired, an auditor can go to the Federal Tax Court and appeal for a judgement (sheriff) and receive an additional 10 year extension.
A tax consultant can help you with questions or concerns about filing bankruptcy and the chances of!

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