Letter 1058 Precedes an IRS Levy The IRS seizes or levies property from taxpayers who owe back taxes. It is through the levy process that the IRS garnishes wages, seizes a car or attaches other items of property. Many taxpayers are frightened by notice of ... Read full article
Debts discharged in bankruptcy do not trigger tax liability Most everyone knows that filing for bankruptcy eliminates credit card debt, medical bills and other unsecured loans. However, a significant benefit of filing, that is rarely discussed, are the tax ... Read full article
The Limits of Bankruptcy Relief Under the right circumstances, filing for bankruptcy can provide great relief to a family or an individual struggling with debt. Assuming you qualify, chapter 7 bankruptcy can completely eliminate credit card debt, medical ... Read full article
To be able to discharge a tax debt, the tax needs to be older than 3 years, correct? I think this what normally people including myself normally remember about discharging taxes. Let’s see on a recent case: 4.8.11 client filed bankruptcy hoping to ... Read full article
Attorney, Mobile, Alabama Arthur P. Clarke, Attorney for the Debtor, Mobile, Alabama In re: ELIZABETH KATHERINE LOVING, Debtor. ELIZABETH KATHERINE LOVING, Plaintiff, v. UNITED STATES OF AMERICA, Defendant. Case No.: 11-01439-MAM-7 Adv. Proc. No.: 11-00141 ... Read full article
IRS Wage Garnishment Packs a Punch Both debtor’s attorneys and debtors themselves often complain about the chapter 13 bankruptcy requirement that all disposable income be committed to the chapter 13 repayment plan. In fact, some bankruptcy lawyers have ... Read full article
What is an Offer in Compromise? Tax settlement firms love to advertise the offer in compromise, a method for resolving IRS back taxes that theoretically involves payment of a small portion of the outstanding tax bill owed and forgiveness of the rest. Firms ... Read full article
An IRS lien is a federal tax lien (FTL) that the IRS places against your property, similar to a mortgage on your home or a lien on your car. The difference is that the lien is placed against everything you (the taxpayer) own, right down to the cash in your ... Read full article
If I received a 1099 from a Creditor After My Bankruptcy Case is Completed: Is this Taxable Income? I’m often asked this question by my clients around tax-time as to what effect does their bankruptcy have, if any, on their income taxes. The exact ... Read full article
Creditors who were discharged in bankruptcy are not supposed to send you 1099 forms because a bankruptcy discharge is not a taxable event. Some do it in and out of bankruptcy in order to get you to pay a debt. I think it is a violation of the automatic ... Read full article
