The third amended IRS claim in my client’s case added entries for an excise tax for 2015 and 2016. Excise tax? New one on me where the debtor was a general contractor. I called the IRS agent on the POC for some hints as to what the tax was all about . I needed to […]
The Smart Way To Cut The IRS Out
Like so much in life, it’s all about timing I revisited an older post here about delaying the filing of a bankruptcy til the New Year when the debtor expects to owe taxes in April. A Chapter 13 filed in January can include and pay the taxes associated with the tax year ending in December. […]
Getting Means Test Tax Projections Right
The means test tax deduction offers fertile ground for passing the means test. But mention tax calculations to a bankruptcy attorney and 7 out of 10 freeze on the spot. I’m not a tax attorney, they retort. That’s right, but, if you are a bankruptcy attorney, that doesn’t relieve you from knowing enough tax to […]
Taxing Questions In Business Bankruptcy
Tax issues in a failing business can feel like a maze to the bankruptcy lawyer. Towering walls and no vision of the path forward. Let’s break down the components and see how that influences the choice of chapter and the decision about who files the bankruptcy case. Types of taxes Start by identifying the kinds […]
Are You Throwing Your Bankruptcy Client To The Predators?
Behind every IRS tax audit lurks the state taxing authority. Fail to give the state its due, and the tax in question may be non dischargeable. I had to dredge this tidbit from memory last week when we were looking over the tax transcript for a client who had been audited by the IRS and […]
Bankruptcy’s Short Tax Year: Gem Hidden In Plain Sight
Double your tax returns, double your fun? Well, maybe taxes aren’t fun, but they are inevitable. Mastering the gem of the short tax year can mark you as a bankruptcy lawyer who really knows his stuff. The option of selecting a short tax year in bankruptcy is too little understood and too seldom used. This […]
6 Basic Points About Tax Liens in Bankruptcy
Everywhere I’ve looked this week, new bankruptcy lawyers are struggling with client tax liens. Here’s my list of basics you need to know about federal tax liens. Tax liens create a secured claim in favor of the taxing authority. That claim incurs interest at the statutory rate. Exemptions, bankruptcy or state, are not effective against […]
