Filed an IRS extension request before filing your tax return? This may negatively impact the discharge in bankruptcy

Filed an IRS Extension Request before filing your tax return.  Take this into account when deciding whether to use bankruptcy to discharge the debt Several rules exist that govern whether an  income tax debt is dischargeable in a bankruptcy case.  They are all important, but Read More …

IRS Substitute Returns: Overstated tax debt that can be solved

The IRS substitute tax return is based on the reported gross income…only.  It doesn’t take into account: mortgage interest children (dependency exemptions) business expenses basis amounts – sale of property and stock charitable contributions marriage situation depreciation In essence, it doesn’t take anything into account Read More …

Tax Debt – Why can’t I pay the original balance and receive a waiver of the penalty and interest?

Tax Debt versus penalty and interest A common  question my clients ask is “why won’t the IRS just accept a check for the original tax amount and waive all the penalty and interest”. This question makes alot of sense and in the real world most Read More …