recently converted to ch 7

[papa0881]

i recently converted to ch 7

i owe 79k in employment taxes i know this is not discharged in ch 7 however, my ? is i got a form today that says we charged you a penalty for not paying employment tax. well one is for 11k and one is for 10k.

at the bottom it says

if you want us to suspend collection of the penatly while the suit is pending before the court, you must post bond with the irs for one and half times the balance.

i have been dealing with being in and out of the hospital for the past 2 years. i have been dealing with a local irs rep now for 2 yuears and she has been nothing but a complete bitc you know what. and nothing but a worthless piece of crap and giving me no help.

what does this mean? im in court? i did not even know im in court?!!???!!

[tcreegan]

more info: IRS during BK

Hi papa0881,

I'm no help on your tax issues, but some more info would probably be helpful...

i got a form today that says we charged you a penalty for not paying....at the bottom it says

is this a standard IRS form? or is it a summons or something specific to a court case?

if you want us to suspend collection of the penalty while the suit is pending before the court, you must post bond with the IRS for one and half times the balance.

could be a standard IRS disclaimer. Might refer to any case you might have pending. What you need is info on:
"What can the IRS do for collections during a BK?"

what does this mean? im in court? i did not even know im in court?!!???!!
To be in court, you need to be in a pending case, have been served w/ a summons, some official notification. Check your mail.....

Sorry your local IRS agent hasn't been helpful...should we be surprised?
I seem to remember the IRS having a procedure to go over a local reps head, maybe some of the tax folks on the forum have some suggestions?

Hope your medical situation improves,

Tom in Colo

[sworks2]

If the employment taxes are more than 3 years old even though the tax itself is not dischargeable, the penalties are usually dischargeable because they are considered a 'punitive' action.

[tobee43]

If the employment taxes are more than 3 years old even though the tax itself is not dischargeable, the penalties are usually dischargeable because they are considered a 'punitive' action.

it will depend...were you, or are you a subchapter 2...sole prop...llc???? each may have different tax ramifications.

[biotechsolution]

doesn't matter for the penalties attached to any tax, they are all considered a 'punitive' tax.

[papa0881]

i just got my conersion papers today..... im a s corp. with partners.

im personally bankrupt and not them, but im responsible for the taxes. yes they are 3 years.

whats punitive,does that mean that i wont need to pay them?

will they take meto jail because ofthis?

[tcreegan]

taxpayer advocate

Hi papa0881,

Given your experience with your local IRS rep, this seems tailor-made for you:

Taxpayer Advocate call 1-877-777-4778 to find the one for your area
You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should.

I'll bet they can answer your tax questions....

You won't go to jail for not paying, you won't go to jail for mistakes, you go to jail for fraud.

Hope this helps,

Tom in Colo

[biotechsolution]

The taxpayer cannot help you once you filed for bankruptcy, once you filed it takes your case out of their hands.

If your taxes are more than 3 years old even if the taxes are eligible for discharge. Non-income taxes are usually not dischargeable. But since penalties are considered a 'punitive' tax. They are dischargeable.

[tobee43]

there is one exception...LEAVE the country for 10 years refile in that country and they will even discharge your student loans in the us for you.

http://www.bkforum.com/showthread.php?t=61543