Bankruptcy & Your Closed Business - How Does Your IRS Debt Fit In?

False Hope...Despite assurances by our government· The tax debt has to be from 3 years ago or
leaders that we are not entering a recession, the restfurther back. Any debt from the last 3 years can not
of us know that we are. The sub prime lending crisis,be included in bankruptcy.
the rising gas prices have hurt multiple businesses,· You can not have any unfiled tax years; this
especially the small and independent business person. Ifwill automatically disqualify your IRS debt from the
you were a contractor working in the constructionbankruptcy.
business you know just how bad things really are.· Your tax debt can not have come from a
Tighten your belt...You're not getting as much work asfraudulent return. If you cheated on your taxes and got
you used to. You can't afford to pay your IRS taxes,audited the IRS will still get their money.
and they keep adding up. You're in debt to otherWhat if? Even if I can't get my IRS debt included in the
creditors for business loans. Your business is goingbankruptcy, am I temporarily safe from the IRS? Yes
down fast, and you're going down along with it.and no...even if you don't include your tax debt in your
The walls are closing in...Right now you're very likelybankruptcy any collection actions fall under the
considering filing bankruptcy...you may even beautomatic stay. An automatic stay legally prohibits any
considering closing your business and selling off yourcollection actions from anyone until the bankruptcy has
assets to pay your creditors. In short you are in a badended. So yes you are exempt from IRS collection
situation. But even owing other creditors you still havepractices while in the bankruptcy.
the shadow of the IRS looming over everything. AndWhat about my tax return refund? Do I get those
the IRS is determined to get you tax debt whetherwhile I'm in bankruptcy? Unfortunately no, your refund
you owe creditors or are in bankruptcy.goes to paying off your IRS tax debt.
Telling it straight...What is the deal with an IRS debt andThey'll wait...But the IRS is very patient, and if you still
bankruptcy? You've probably heard some things aboutowe the debt after the bankruptcy is discharged or
getting your IRS discharged in a bankruptcy. Some ofdismissed you may be in for a rude awakening.
them true, some of them not.No protection...First of all interest and penalties continue
What you need to know...So if you've lost yourto add on your debt, so depending on how long you
business, and you're drowning in debt, and you're filingwere in bankruptcy your debt may have ballooned.
bankruptcy; how can you include you IRS tax debtAlso your time in bankruptcy extends the Statute of
with the bankruptcy.Limitation which is the amount of time the IRS has to
If you want to get your bankruptcy successfullycollect on your debt.
discharged in a bankruptcy here are some of theNow you have the smoking gun...Use it!
requirements: