Bankruptcy And Tax Debt In California: What Debt Is Dischargeable? Can I Discharge IRS Tax Debt?

Tax Resolution and Bankruptcy

Tax Resolution and Bankruptcy

There are many misconceptions about bankruptcy. People fail to understand and realize that there are specific rules about what types of debt can be discharged under Chapter 7 bankruptcy. Luckily, in an effort to help our potential clients and bring clarity to a confused mess, the Tax Resolution Institute offers this illumination. Since we are based in Southern California, we have seen the problems you are experiencing first-hand and we know how to help. We are the best at tax dischargability analysis.

In general, most kinds of consumer debt can be eliminated under a Chapter 7 bankruptcy filing. If you qualify and the court rules the debt is dischargeable, you can eliminate consumer debt such as:

1) Credit Card Debt

2) Medical Bills

3) Secured Loans like a Car Loan

4) Tax Debt if…

Can I discharge all of my tax debts?

Can I discharge all of my tax debts?

But when it comes to delinquent IRS tax debt, there are very specific rules that need to be followed. Income tax debt can often be eliminated under Chapter 7 if you have filed your tax returns and sufficient time has passed since the tax debt was assessed. If you owe a substantial amount of federal or state tax debt, you may not need to file for bankruptcy.

By examining your records and providing a free consultation, the Tax Resolution Institute can come up with the solution that works the best for you. Whether it is an Offer in Compromise or an Installment Agreement, Currently Not Collectible Status or Bankruptcy, the Tax Resolution Institute will help solve your IRS delinquent tax problem and find a way to help you back on the road of prosperity and success. If you live in California and you are in serious tax trouble and considering bankruptcy, do not hesitate. Call the Tax Resolution Institute today for help and the best in tax resolution services at 877.829-8370.

 

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

After Newport Beach Tax Return Is Filed In The Filing Cabinet, TRI Abates $188,000 In IRS Penalties And Interest

The Tax Resolution Institute has experienced so many examples of high income clients with serious IRS income tax problems where the client truly is not at fault. Yes, they did not pay their taxes, but not because they were evading them or did not have the money to cover their tax bill. Instead, they were victims of stupidity and foolishness by people who work for them. A perfect example is when a Newport Beach Entrepreneur finished his taxes, wrote the check, then gave the papers with check attached to his assistant with the express request to file the return. Did the assistant file the taxes on time with the Internal Revenue Service? Nope. Foolishly, he filed them in the office filing cabinet, and no taxes were ever paid.

The Newport Beach Entrepreneur Needed To Stay One Step Ahead!

Tax Crisis of a Newport Beach Entrepreneur

When you are a successful entrepreneur, you always have to everything to stay one step ahead of the game. In today’s challenging Orange County economy, the Newport Beach Entrepreneur had a lot of projects on the table and a lot to do every day to keep the proverbial balls in the air. The tougher the economic climate, the harder the juggling. As a result, when he asked his personal assistant to do something as simple as file his personal income taxes with the IRS, he expected the task to be done. You cannot imagine how surprised he was when he received a notice from the IRS months later. Since he thought the taxes had been filed, he ignored the first notices, even responding that it was a mistake. Finally, when he asked the assistant if the taxes had been filed, he said that they certainly had a showed him the packet in the filing cabinet. Naturally, he was handed his walking papers.

When the Newport Beach Entrepreneur realized that his IRS income tax crisis was out of control, he asked a close business associate for help. The business associate recommended that he go to the Tax Resolution Institute because of their proven history of expertise. Taking a free consultation with Peter Stephan, the Newport Beach Entrepreneur became aware of how extreme his income tax problem had become. Since the interest on delinquent tax debts compound daily and the penalties continue to increase, the Orange County man now owed an additional $188,000 to the IRS. If he was forced to pay the full amount, the future of hus business and the security of his family would be placed in crisis.

Contact TRI today for help!

Contact TRI today for help with the IRS!

Luckily, Peter Stephan and the Tax Resolution Institute had a viable solution to the Newport Beach Entrepreneur’s serious income tax problem. Although it made sense to apply for a Penalty Abatement, the traditional channels would not work because the mistake made by the assistant could not be proved. Nevertheless, by taking a chance and hiring TRI, the Orange County man made the right move. Peter Stephan was able to find a hole in the tax code that allowed for a Penalty Abatement to be filed successfully with the Internal Revenue Service. Illustrating the nature of the problem to the IRS Revenue Officer, Peter Stephan had all the penalties and interest abated in exchange for full payment of the original tax bill.

If you have a serious IRS income tax problem and you need help, contact the Tax Resolution Institute today. If we can help you, we will find a viable option and solution. Whether it is a Penalty Abatement or Offer In Compromise or Installment Agreement, Peter Stephan provides the best in tax resolution services!

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

After Bankruptcy Lawyer Fails To Discharge IRS Tax Debt, Peter Stephan Rescues Irvine Computer Executive

When it comes to personal bankruptcy, IRS tax debts can be discharged and removed from your financial record if the proper time requirements are met. If your bankruptcy lawyer fails to report the discharge claim to the IRS, then nothing will happen to the delinquent tax debt. If you fail to go through the proper channels and fill out the paperwork, the IRS will not recognize the bankruptcy and will continue its collection efforts. Such was the dilemma faced by an Irvine Computer Executive who already had lost her high-paying job and gone into home foreclosure on account of the economic downturn. Luckily, with years of experience and expertise helping American taxpayers in trouble, Peter Stephan and the Tax Resolution Institute was able to resolve the problem and wipe away a majority of the delinquent income tax debt.

A Proper Bankruptcy Should Not Lead To More Tax Trouble

A Proper Bankruptcy Should Not Lead To More Tax Trouble

Despite negative perception, the Internal Revenue Service in reality is not a vengeful pirate-like entity looking to ravage innocent taxpayers. What they are is the largest collection agency in the world, and their collection efforts will not stop until all the t’s are crossed and all the i’s are dotted. When the Irvine Computer Executive was forced to declare bankruptcy, her bankruptcy lawyer made some glaring mistakes in the filing process. Although the bankruptcy was accepted, he failed to report the dischargeable nature of the delinquent income tax debt to the Internal Revenue Service. As a result, rather than being wiped away, the $150,000 income tax debt remained on the Orange County woman’s record. You can imagine how disturbing it was when she began receiving notices from the IRS after believing her income tax debt had been wiped clean by the bankruptcy. With her former lawyer unwilling to take action or even return her phone calls, she was caught in a downward spiral that accentuated the horror of losing her job and seeing her family home go into foreclosure.

When the Irvine computer executive came to Peter Stephan and the Tax Resolution Institute with the problem, the first thing Peter did was a tax dischargeability  analysis of the woman’s past income tax debt. Although having knowledge that taxes are dischargeable in bankruptcy, many second-rate bankruptcy attorneys still believe that the IRS will demand to get paid no matter what.  In truth, under specific conditions, personal income taxes are dischargeable. The tax experts at the Tax Resolution Institute know the basic requirements and the nature of the individual tax liability that may be discharged in a Chapter 7 bankruptcy.

The Bankruptcy Code does not specify taxes that are dischargeable, but it does specify the taxes that are excepted from discharge. In simple language, unless secured, income taxes are not excepted from discharge. However, if the requirements are met in full, the process will not fail and the income taxes will be discharged.

Tax Dischargeability Analysis Provided A Solution

Tax Dischargeability Analysis Led To A Solution

After doing his analysis, Peter Stephan realized that $125,000 of the Orange County woman’s $150,000 income tax debt was dischargeable according to the accepted criteria. Since the bankruptcy had already been filed. Peter Stephan went through alternative channels by contacting the bankruptcy unit of the IRS directly. Recognizing the just nature of the claim  that met all of their requirements, the IRS discharged the delinquent taxes and wiped away all penalties.

In conjunction with this filing, Peter Stephan negotiated a very reasonable Installment Agreement for the Irvine Computer Executive that covered the rest of her delinquent tax bill. Incredibly grateful, she was so happy to finally have the chance to make a fresh start. If you have a delinquent income tax problem that needs to be addressed through tax resolution techniques or discharged through personal bankruptcy, please contact Peter Stephan. We can help you overcome this challenging hurdle of tax trouble and make a fresh start.
Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.