Chapter 7 bankruptcy and the IRS

[down @ out]

I just filed bankruptcy and have included a old tax bill i have been paying the IRS. I am confused on how to go about attempting to discharge this bill.

I have read that I would need to file a complaint and go through a hearing process and prove why an exception applies that would allow me to discharge the debt. This will cost a lot of money an I don`t know if I have the expertise to attempt it.

I was told by the bankruptcy clerk to simply do nothing and let the IRS file a
complaint.

Any help would be appreciated.

thanks

[StaciMM]

There are conditions that make the tax debt dischargable, but I don't know all the details. I know that some requirements are that the bill is over a certain age, was filed on time, and that a fair effort has been made to pay them off.

Perhaps someone here has been in the situation of having tax debts discharged and can give you more info.

[AAAArt]

The tax bill has to be have been assessed and filed more than 3 years ago. When you file an "automatic stay" goes into effect w/ all creditors, including IRS. They cannot repossess, garnish and are not supposed to contact you with any further collections. If your problem with the IRS and it is personal taxes, not payroll...and if there's no lien, it will just be discharged with your other bills.
If they have filed a lien, then you or your lawyer will have to file to have it discharged seperately or work out some kind of deal with them.
Hope that helps.

[down @ out]

bankruptcy and the irs

the issue will be decided on whether or not the IRS assessed the taxes according to their own policy and procedures.

On one hand the IRS contiued to try and collect the account while I had an offer in compromise pending and did in fact place a levy on my checking account. Once they turned me down on the offer in compromise they started the clock ticking sorta speak on the assessment date. My objection is that they assessed the taxes months before this date since they continued the collection efforts irregardless of the oic. Guess they could say they simply made a mistake.

If I could have waited several more months I would be free and clear but didn`t want to try this under the new laws.

Anway do I need to file a complaint to have the matter heard in court or does the IRS file a complaint and I simply respond. I read in the nolo book on bankruptcy I have to file the complaint but the clerk at the bankrupcty court indicated the IRS will file the complaint.

Thanks,

[quest42]

Taxes ... Bankruptcy ... or Offer In Compromise?

I've got a similar situation with 1998 and 2000 taxes due... with assessments and levys and liens, so I am very interested to know what's said and done about this question. Generally, the BK court clerks are most familiar with procedure, but they cannot of course give legal advice. I've been looking for some answers too, not finding much yet... I was going to wait and see what happens in BK then make OIC if it does not get discharged. I have no funds to pay any attorney, so whatever is to be done, I must do it -- in pro per.