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Any experience discharging IRS debts?

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    Any experience discharging IRS debts?

    Has anyone successfully discharged a federal income tax debt? I owe the IRS from several years in the past (I'm self employed), and listed those that were more than 3 years old - and met the other criteria spelled out in Nolo's self-filing book. Just curious whether it's likely to come up in the 341. Ours is in two weeks and I've received no notice that the IRS intends to attend.

    Thanks!

    #2
    I'm in the same situation, but my 341 isn't until 12/6, so I can't help. One of the problems I have is that the IRS filed a lien for taxes due in '90. '91 and '92I have been paying them for many years on an installment plan. Over $70,000 in the last 8 years. Original debt...$39,000. Grew to $41,000 while making small installment payments. Currently owe...$18,000.
    Now approx. $4000 of that debt is still under a lien until Jan. of next year. My lawyer says that he'll try and get that discharged after the BK, by negotiating with the IRS. This will of course incur some additional atty. fees, which I will gladly file.
    Gawd, I wish I had known seveeral years ago about chapter 13 and that you could include IRS and stop interest and penalties. I wouldn't be filing chapter 7 now.
    BTW, if it makes you feel any better, I understand the tax situation with self-employment. It is very difficult.
    What got me into trouble was my own stupidity and unwillingness to seek help or tell anyone. I went through a divorce and was devastated. Had a good year, fell in love with a wonderful woman who also owned her own business. Decided to buy a house and invest in my business rather than even file taxes or even talk to the IRS. 3 months later, wonderful woman was gone...really crashed emotionally, some physical problems from car crashes and business fell off. I didn't file for 3 years and was in deep doo doo when they finally nabbed me. Stupid, yes...but I learned even that was correctable.
    Hope my story helps you not to feel as bad about your own. Best wishes, Art

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      #3
      My two cents...

      Before I filed, I was told to clean up my IRS debt of 2001-2004. I owed on alimony only; around 18K. I had called a couple of cents on the dollars places but they wouldn't touch me. My attorney had said, clear up the IRS before you file. I pulled the cash out of my retirement fund; I did not want to be on a payment plan with Uncle Sam so that was my only way to take care of it. My ch. 7 should clear up the rest of my mess. Yes, I'm about broke, the only thing I own is my SUV, maybe they'll take it, maybe they won't...it needs a good amount of work and there's probably going to be a glut of SUV's so it's not going to be worth their while to take it, repair it & try to sell it...I've got a hurricane about to blow my way into my state which if it comes between Sarasot & Tampa...well, there goes my job, home & everything anyhow...maybe that's the person in the sky's way of saying...clean slate...let it blow?
      Filed Oct 2005discharged February 2007,Shapeless in the fire's glow, tell me if you think you know,
      Who it was we were below, where we've been and where we go

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