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IRC 108 Tax Obligations in Bankruptcy

First off regarding income, do not include a canceled debt in gross income if any of the following situations apply: The cancellation takes place in a bankruptcy case under the U.S. Bankruptcy Code. The cancellation takes place when the debtor

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Posted in Bankruptcy, Cancelled Debt

Taxes, Insolvency and the Bankruptcy Estate

You are insolvent when your liabilities exceed the Fair Market Value (FMV) of your assets. It is important to determine your liabilities and the FMV of your assets immediately before the cancellation of debt to determine whether or not you are

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Posted in Bankruptcy, Insolvent

IRS Notice 2006-83: The Bankruptcy Estate

When an individual files a bankruptcy petition under chapter 7 or 11 of the bankruptcy code a bankruptcy estate is established. The bankruptcy estate is treated as a separate taxable entity. If a trustee is appointed, the trustee is responsible

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Posted in Bankruptcy, Entity Classification, Foreclosure, Tax Guidance & Preparation

IRC Section 1398 Election: Banruptcy and the Creation of a Short Tax Year

If you are an individual debtor in a chapter 7 or 11 bankruptcy case you may be able to elect to close your tax year for the year in which the bankruptcy petition is filed as of the day before

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Posted in Bankruptcy

IRS Compliance Requirements and the Bankruptcy Code

This blog is my personal tax research tool. Pursuant to the rules of professional conduct set forth in US Treasury Circular 230 nothing contained in this blog was intended to be used by any taxpayer for the purpose of avoiding penalties that

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Posted in Bankruptcy

IRS Levy Release Overview

The IRS it seems is issuing liens and levies with substantial gusto lately. I've grown reasonably skilled at getting these burdens timely released and felt compelled this evening to share some of my experiences in this blog post. A levy

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Posted in IRS Levy

What taxes can be discharged in bankruptcy

Bankruptcy tax law is complicated and involves a firm grasp of time lines. Getting it right is complicated and requires reflective consideration. I learned this first hand back in 2004. If you get it wrong you loose the privilege of a

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Posted in Bankruptcy, Tax Fraud, Tax Guidance & Preparation, Tax Problems & Requests, Tax Relief

Inherited IRA’s Are NOT a Protected Asset Class in FEDERAL Bankruptcy Proceedings

Traditional retirement accounts are generally speaking considered a protected asset should you be required to endure FEDERAL bankruptcy protection. However an Inherited IRA is not generally considered a protected asset in 2 distinguishable regards: The distributions of funds from an

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Posted in IRA

Discharge income tax debt through bankruptcy

If the income tax debt meets all five of these rules, then the tax debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions. The due date for filing a tax return is at least 3 years ago. The

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Posted in Bankruptcy
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