Included back personal income taxes and lien in Ch7 that met the reqirements to be discharged. But how do you know for sure ? Do i need to call the IRS or will the BK Court or my attorney let me know.
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How does one know what back taxes are discharged ??
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I'm in the same boat. I posted on the Pro Se section the same question and got some good suggestions. One was to send a "45 day letter" to the IRS asking for confirmation that the debt is indeed discharged. I presume the 45 days was the intended response time for the IRS! For the lien the suggestion was to offer some small amount to clear the lien (500, 1,000 or so).
Good luck. I confess I haven't done my letter yet and it has been over a month since my discharge with no action yet from the IRS or State. I presume they would not contact us unless prompted...
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Our attorney filed an adversarial proceeding against the IRS. This gets a formal response from the IRS to the BK court wherein they agree with or dispute which years are eligible for discharge. The IRS agreed with the discharge for 4 of the 5 years in our AP and in our re-doing the time calculations, they were correct. So, we have it on record that at least the 4 years are discharged.
I believe others will point out that this is probably an overkill solution but our attorney feels it is proper way to do it when dealing with the government?
I believe there is a dept in the IRS that can be called for info on taxes, BK and discharge but sorry, I don't have that info.
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This aspect of BK can be unnerving, but when it comes to discharge of debts, many of the provisions are self-actuating (some aren't, for example, student loan discharge REQUIRES the filing of an adversary proceeding). So long as the taxes meet the requirements, the taxes are discharged; no formal action is required by the debtor.
The only downside you can encounter is if the IRS doesn't code the discharge in their system properly. You may start getting notices and collection activity after the discharge, but usually a quick call to the IRS insolvency division will solve that problem.Last edited by HHM; 09-14-2010, 11:25 AM.
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