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Tax Question & Wage Claim

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    Tax Question & Wage Claim

    Hi! This is my 1st post on this forum and I'm hoping to get my two biggest questions answered. I have an appointment with an attorney next week but can't wait to another few days to find out the answers to my questions!

    I'm from the state of Kansas. I used to own a small business that made less than $30,000.00 a year. I had a few employees.

    1. I didn't file a personal or business returns for 2008. I've got an accountant working on the late return now, along with the 2009 returns. If I file the returns, and owe the IRS a bit of money, will it interfere with my planned filing of a chapter seven bankruptcy? I want to re-pay the IRS/State Tax debt and understand I can't discharge it.

    2. If an employee has made a wage claim against me, in April of 2009, and it has been awarded, will it be considered a priority claim in my bankruptcy? I've found a lot of information about a 180 day time frame. I can't afford to pay the $4,000.00 they say I owe now when the original claim was for $300.00.

    Please help me answer these questions! I'm no longer self employed and I'm trying to get things back on track!

    #2
    I don't see why tax debt would interfere with your Chapter 7. Because mine wasn't dischargeable, state or Federal, and I owe rather a lot in total, I actually included a significant value in monthly tax debt payments among my Schedule J expenses. So, all I can think of that it might affect is, if you want to reaffirm some secured debt, and you also have a lot of tax debt, I expect you'll still need enough disposable monthly income to make those payments as well as keeping the IRS as bay.

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