April 23, 2020, How To Discharge IRS Taxes In Bankruptcy Court

"Although the courts have been closed for weeks now, with much at a stand-still, there seems to be a glimmer of hope. The courts are slowly instituting skype video conferencing, several of which I have attended regarding wills, trust and estates, matrimonial cases as well as audio conferences which is what is currently available in the United States Bankruptcy Court. Once such bankruptcy my office recently filed is probably of interest to many.

HOW TO DISCHARGE IRS TAXES IN BANKRUPTCY COURT

An older couple came to me in March whom my office had represented about 4 years ago in getting them a loan modification for their home in Rockland County.

Unfortunately due to their age and fixed income they continued to fall behind in other areas of their finances. My clients owed IRS taxes going back several years, and those taxes were accumulating quite fast. There is a exception, a rather narrow one, which allows people to discharge their IRS taxes so long as they meet some very specific criteria, in accordance with the applicable Sections of the Bankruptcy Code, which allows for such tax debt discharge. One major issue was when we had the tax transcripts analyzed we found that we would have to file this motion no later than April 8, 2020 to receive this benefit.
In the case above, my clients will be able to discharge approximately $50,000 of their $90,000 tax debt. Then the balance of that debt I expect to then create an offer and compromise plan with the IRS where the clients will agree to pay the tax obligation over a fixed time of a fixed monthly amount. if you have questions about issues like the above or, or just have a legal question, feel free to e-mail me at [email protected] or call 845-639-7011. Needless to say this couple is very happy with our work, They are very thankful to Trina, a superb Bankruptcy paralegal, who diligently worked on this is case, and was able to get it all done quickly enough to meet the April 8 deadline!"