If you owe the IRS and it’s grown quiet, no notices for a long while, your’e probably “concerned”.
You want to know what’s going on. Is the IRS about to levy your bank account or garnish your paycheck? How much time is left on the 10 year period the IRS has to collect the debt?
But…you’re also concerned about waking
Tax Debt left unattended will result in IRS collection activity…levies, liens and property seizures.
IRS collection activity just doesn’t stop on it’s own. It will happen after the tax debt has been:
a. Assessed (entered into the books as a debt)
b. You have been sent a notice of the debt and demand for payment and you don’t pay. AND:
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 some consumers and small business people
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, you have $150,000.00 in equity.
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 the problem, it should provide you some additional knowledge about
In most bankruptcy cases, a powerful tool called the “automatic stay” comes into existence the moment the case is filed. This “stay” prevents almost every type of debt collection from continuing. A home foreclosure, car repossession, and garnishments all end by operation of law. The automatic stay applies to the “debtor” or “debtors” who actually file the bankruptcy
Creditors like to issue 1099-c documents if they’ve worked out a settlement and decided to forgive the debt entirely. Creditors also issue 1099 forms when bankruptcy is filed and it discharges the obligation to pay the debt. These forms also show the IRS that the debt forgiven matches the amount written off in their own tax return.
In September of last year, the IRS issued a notice indicating an intent to use private debt collection services. This is going to become reality when the collectors begin handling old accounts within a few months.
The IRS will send a notice explaining the details and the private debt collection agencies will also send a notice out explaining that it
If you own a business and that business has value, many people would assume that it should be included as an asset in calculating the amount of settlement. As a result, many offers are calculated much higher than they should be.
Income producing assets in an IRS Offer in Compromise shouldn’t always be fully included in the calculation of “reasonable
When the IRS is owed more than $10,000.00, it will record a notice of federal tax lien in the County in which you or your real property are situated. It will do this unless you’ve arranged a streamlined installment agreement, or you file a bankruptcy case before the recording occurs.
The recorded document puts the world on notice that