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Bankruptcy Tax Tax Procedure Tax Returns

Proving that You Mailed a Tax Return to the IRS

How do you prove that you mailed a tax return to the IRS?  This may sound like a simple question to answer.  It isn’t.  The have been and continue to be disputes involving this very issue.  The recent In Re McGrew, No. 13-00149 (Bank. N.D. IA 2016) provides an example. Facts & Procedural History McGrew filed […]

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Bankruptcy Tax IRS Debts Offer in Compromise Tax Procedure

Discharging Taxes in Bankruptcy vs. Settling with the IRS

Bankruptcy can be one of the best methods for resolving tax debts. This is particularly true if the taxpayer’s primary assets only consist of retirement accounts and equity in a personal residence. The recent In re Moore, No. 15-42046 (Bankr. E.D. Tex. Jul. 7, 2016), case presents an opportunity to consider the results if the […]

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Bankruptcy Tax IRS Debts Tax Procedure

Discharging Tax Debts in Bankruptcy: The Three Year Look-Back Period

Bankruptcy is often the best method of resolving unpaid tax debts. The U.S. Tax Court recently addressed one of the rules for discharging unpaid tax debts in bankruptcy in Lehman v. Commissioner, T.C. Summary Opinion 2008-83. Facts & Procedural History On Lehman’s Case In Lehman, the taxpayers initially sought Chapter 13 bankruptcy relief. The taxpayers filed […]

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Bankruptcy Tax IRS Debts Tax Procedure

Prepaying Taxes Before Bankruptcy Filing

Can you overpay your taxes and then file bankruptcy, with the aim of having the overpayment applied to other tax liabilities post bankruptcy?  The court addressed this in Nichols v. United States, No.?05-15554 (9th Cir. 2007). Facts & Procedural History The taxpayers in the Nichols case overpaid their 2001 state and federal tax liability. The court opinion […]

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Bankruptcy Tax Federal Income Tax Innocent Spouse Relief Marriage & Divorce Tax Tax Tax Procedure

Bankruptcy Filing Does Not Prevent Innocent Spouse Relief

Can one spouse prevent the other spouse from  obtaining innocent spouse relief by filing bankruptcy?  The court addressed this question in Kovitch v. Commissioner, 128 T.C. 9 (2007). The Facts & Procedural History The Kovitch’s were divorced. The IRS then issued a notice of deficiency to both spouses for their joint tax liability. Only the wife […]

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Bankruptcy Tax Federal Income Tax Innocent Spouse Relief Marriage & Divorce Tax Tax Tax Procedure

Ex-Spouse’s Defense for Tax Discharged in Bankruptcy

What if an ex-spouse who is jointly liable for the tax waits until after the other ex-spouse’s bankruptcy discharge and argues that the taxes were not discharged in bankruptcy as the tax return was invalid?  The court addressed this in Kuhl v. United States, No.?05-6570-BK (2nd. Cir. 2006).   Facts & Procedural History Ms. Kuhl owed the IRS […]

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Bankruptcy Tax IRS Debts Tax Procedure

The Bankruptcy Abuse Prevention and Consumer Protection Act

For the most part the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 comes into full force on October 17, 2005. The Act contains a number of tax-related provisions, almost all of which are controversial. I will focus on a few of the tax-related provisions. The Bankruptcy Code & How It Works The Bankruptcy […]