Thursday, March 17, 2011

Discharging Back Taxes And Bankruptcy

This is a Chapter 7 bankruptcy back some Internal Revenue Service (IRS or the evil empire), the unpaid taxes to provide certain conditions are met it is possible to leave. It is easy to meet the conditions but it is not always. To a degree, back taxes owed to the state of California are analyzed and treated similar to the federal tax return. However, especially in the area of ​​law, it is best about your individual case, consult with an attorney in person.

Well, here is the freedom to position your back taxes to the IRS to give you something that must be met in order. First, the return that is more than a year before you filed for bankruptcy for 3 years should be. Date that is always used April 15, XXXX is. Date by the law (at least according to the bankruptcy laws) that have filed for taxes to be paid is due. Unless of course you get the evil empire of the taxes, file extensions, you have time to file extension will use the date.

For example, Chapter 7 bankruptcy for you March 15, 2011, the earliest year for back taxes that you may have to leave the 2006's are filed. The reason being that for calendar year 2007 taxes is due to be filed on 15.4.2007. More than 3 years from the date your bankruptcy is filed.

If you need to leave their 2007 taxes if you file Chapter 7 bankruptcy will wait until 4/16/2011. This way, your filing more than 3 years after the date 04/15/2008. Of course, you might actually believe you three past days just so you do not get technical with the IRS are to be calculated for years wanted to do.

The other main condition in order for a Chapter 7 bankruptcy you need to meet the discharge back taxes that you should have filed a tax return before filing for bankruptcy for 2 years at least. Filing your tax return, meaning simply (but not pay the IRS) filed either an IRS Form 1040 or 1040A, or 1040EZ is. If you did not file a tax return because you could not pay the Evil Empire, you did not order a Chapter 7 bankruptcy case to discharge that debt can. You all past due to file tax returns at least the next two years are going to wait. Fun, yes, do you think?

Lastly, a landmine is possible that the IRS use against you, who filed for bankruptcy may be broken. If the IRS tax lien county in which a stay was filed with the county recorder, the IRS still has the property that was the subject of the lien may be able to come after.

Definition of a tax lien exists only if the taxpayer owes money to the IRS can. In a Chapter 7 bankruptcy, those back taxes that are the subject of the lien has been wiped out. But courts in the Ninth Circuit held that the IRS property liens still exist and that was covered by the lien may be after. In short, it's all good and bad of back taxes and bankruptcy.


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