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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.

    1. BANKRUPTCY – WHAT IS IT? Bankruptcy is a process that takes place in Federal Court. The Bankruptcy Code governs the process and it is designed to provide debt and other relief to consumers and small businesses. Most consumers and small business people file a bankruptcy as a “liquidation” case called a Chapter 7, and…


    1. YOU WILL LOSE YOUR HOME In Arizona, a person or married couple is allowed to protect the first $150,000.00 equity in their personal residence from creditors. This rule applies in bankruptcy as well.For example, if you own a home, you live in it, and it is worth $200,000.00 and your only mortgage is $50,000.00,…


    Tax Debt?  You Have Options The following is a list of the most common legal ways to deal with large IRS tax debt. Some are obvious, some are difficult and require extensive planning and some only work best in combination with another option. Despite the fact that a review of the list alone won’t solve…

  • Avoiding IRS Seizure of Retirement Account After Bankruptcy

    There are dozens of issues that have to be recognized, discussed, and planned for… before a bankruptcy is filed.  For people with IRS debt and an IRS lien, the issue of avoiding IRS seizure of a retirement account after bankruptcy is a big one. First, some background: When you owe the IRS money, it will record…

  • 9th Circuit BAP Reviews the Late Filed Return and Bankruptcy Issue

    Keith Fogg, at the terrific tax blog “Procedurally Taxing” has provided a short review of the Martin v. United States Case wherein the 9th Circuit Bankruptcy Panel (BAP) rejects the literal interpretation of Bankruptcy Code Section 523(a)(*).   You can read his review here. If you have tax debt, and have been following the issue…

  • IRS Collection Statute Expiration Date – Why do we talk about it so much?

    The very first thing I do when a person with a large tax debt balance hires me, is to calculate the IRS Collection Statute Expiration Date or CSED for short. I calculate the clock. Why do I care so much about this bit of information and write about it all the time?  I mean come…

  • Chapter 13 Bankruptcy and IRS Debt – Giving the IRS a Haircut

    THE PROBLEM(S) 1.   IRS Offers in Compromise Don’t Work for Most People Most people with serious tax debt just can’t make an IRS Offer in Compromise work.  Success is based on a formula and that formula is based on a number of facts about the taxpayer’s income, budget, assets in the past, the present and…

  • Is bankruptcy the only way to eliminate tax debt?

    Bankruptcy can be a powerful tool in dealing with serious tax debt.  It can wipe away certain types of tax debt based on income, employment, transaction privilege, penalty and interest and we use it to help clients get rid of millions in tax debt. BUT…it isn’t the only way to get rid of tax debt…

  • I am in IRS Not Collectible Status, will it resolve my tax debt?

    No, IRS Not Collectible Status (NCS) does not resolve the liability – by itself. Some explanation: IRS Currently Not Collectible Status There are several ways to deal with IRS debt.  The most common are the Offer in Compromise, Bankruptcy, Payment Plans of various types, and Placement in Non-Collectible Status. IRS NCS is a “designation” the…

  • I should qualify for an Offer in Compromise, so why Bankruptcy?

    IRS Offer in Compromise vs. Bankruptcy This is a great question and there is really a one sentence answer to it… that goes like this. If your debt problem is primarily the result of tax debt, and if you qualify for an offer in compromise in every way, and if you can find the money…