There is a large segment of our population that owe back taxes to the IRS. Whether you know of their situation, chances are good that you know someone who owes back taxes. Chances are good that you have unwittingly transacted business with an individual or business that owes back taxes. You may have even worked… Continue reading Does Nominee Tax Liability Extend to Employees?
Category: Bankruptcy Tax
About Bankruptcy & Taxes
This page covers bankruptcy tax court cases, rulings, and more. Scroll down to read the articles.
If you want to know more about discharging taxes in bankruptcy, you can read about bankruptcy taxes here.
If you need help discharging your taxes in bankrputcy, please schedule an appointment with our tax attorneys online. You can also call us at (713) 909-4906.
IRS Audits for Insolvent Taxpayers
When times are good, we don’t need to worry about the tax loss rules, the net operating loss (“NOL”) rules, or even the bankruptcy tax rules. But these rules are front and center in most tax planning and advice during and after an economic downturn. We saw this with the 2001 dot com bust, the… Continue reading IRS Audits for Insolvent Taxpayers
The IRS Isn’t Charged With Knowledge of Other Federal Agencies
The IRS only has to mail a notice of deficiency to a taxpayer’s last known address in order to assess or record a tax liability for the taxpayer. This “last known address” rule is often the subject of disputes. The Sadek v. Commissioner, T.C. Memo. 2018-174, case provides an example where information available to the… Continue reading The IRS Isn’t Charged With Knowledge of Other Federal Agencies
Planning for Tax Refunds in Bankruptcy
The In re Porter, No. 16-11831-BFK (E.D. Va. 2017) case serves as a timely reminder that taxpayers who have unpaid tax debts and who are expecting sizable tax refunds may benefit from timing the filing of their bankruptcy cases. Facts & Procedural History The taxpayer filed her 2014 tax return on April 4, 2016. The… Continue reading Planning for Tax Refunds in Bankruptcy
Does Withholding on Wages Convert the Wages to a Tax?
The U.S. Bankruptcy Court recently considered whether amounts withheld from wages in excess of the amount of the income tax liability owed is a refund of tax or a refund of wages. The case is In re Crutch, No. 15-44523-cec. (E.D.N.Y. 2017). The case is a reminder to those taxpayers who are considering bankruptcy that… Continue reading Does Withholding on Wages Convert the Wages to a Tax?
Taxpayer Retains Right to Tax Refund Claims Despite Bankruptcy Discharge
The bankruptcy-tax rules can present a number of opportunities. In Martin v. United States, Case No. 3:13-CV-03130 (C.D. Ill 2017), the court concludes that the taxpayers retained the right to sue the IRS for substantial tax refunds for taxes that were overpaid prior to their bankruptcy, despite having discharged their debts in bankruptcy. Bankruptcy &… Continue reading Taxpayer Retains Right to Tax Refund Claims Despite Bankruptcy Discharge
Bankruptcy Court Rejects IRS Plan to Sell Residence
Bankruptcy can be a great way to get rid of older tax debts. The bankruptcy process is supposed to provide a fresh start. The In re Christensen, 15-29773, 15-29783 (2016 Bankr. D. Utah), case is an example where the IRS attempted to use the bankruptcy process not to provide a fresh start, but to collect… Continue reading Bankruptcy Court Rejects IRS Plan to Sell Residence
No Damages for Emotional Distress for IRS Violations of Bankruptcy Law
When a private party violates the law, there are often consequences. This is especially true for the automatic stay that protects individuals in bankruptcy from collections actions during the bankruptcy proceeding. In Hunsaker v. United States, Case No. 6:16-cv-00386-MC, the Ninth Circuit Court of Appeals concluded that the IRS’s repeated violations of these laws does […]
The post No Damages for Emotional Distress for IRS Violations of Bankruptcy Law appeared first on Houston Tax Attorney: Texas Lawyer.
No Damages for Emotional Distress for IRS Violations of Bankruptcy Law
When a private party violates the law, there are often consequences. This is especially true for the automatic stay that protects individuals in bankruptcy from collections actions during the bankruptcy proceeding. In Hunsaker v. United States, Case No. 6:16-cv-00386-MC, the Ninth Circuit Court of Appeals concluded that the IRS’s repeated violations of these laws does… Continue reading No Damages for Emotional Distress for IRS Violations of Bankruptcy Law
How Do You Prove You Mailed a Tax Return to the IRS?
In In Re McGrew, No. 13-00149, the U.S. Bankruptcy Court for the Northern District of Iowa addressed a dispute as to whether the taxpayer had actually filed her tax return with the IRS. The taxpayer said she did; the IRS said she did not. This is a very common and important issue that taxpayers often […]
The post How Do You Prove You Mailed a Tax Return to the IRS? appeared first on Houston Tax Attorney: Texas Lawyer.