Timing to Avoid Tax Interest and Penalties

Wasson and ThornhillIncome Taxes

ouch hurts

Photo by Nick Fewings on Unsplash. How you time your bankruptcy case filing can affect whether, or how much, you pay the accrued, or future, income tax interest and penalties. This blog post is in a series about the importance of smart timing of your bankruptcy filing. Today we cover how good bankruptcy timing can prevent you having to pay … Read More

If You Have Unfiled Tax Returns

Wasson and ThornhillIncome Taxes

tax return

Photo by Olga DeLawrence on Unsplash. You’re considering bankruptcy, and you have some unfiled tax returns for the IRS and/or your state. Should you prepare and file them, and when? Our last two blog posts have been about what you should and should not do before filing bankruptcy. These are important to consider even if you hope to avoid bankruptcy … Read More

IRS Postpones Tax Deadline to July 15

Wasson and ThornhillIncome Taxes

The IRS just postponed the April 15 deadline BOTH to file your income tax return and to pay the taxes, for individuals AND businesses.     IRS Income Tax Return Deadline Postponed Responding to the COVID-19 pandemic, the IRS has postponed the deadline to file federal income tax returns by 3 months. This was announced (on Twitter, no less!) on … Read More

During 2019 You Can Include 2018 Income Tax Debt in Chapter 13

Wasson and ThornhillIncome Taxes

If you owe 2018 income tax you can now include that tax into a new Chapter 13 case and payment plan.     Have you been considering filing bankruptcy and now also expect to owe income taxes for 2018? If so, the start of 2019 gives you more reason to file a Chapter 13 “adjustment of debts” case. Why? Because … Read More

Unexpected Benefit: Use Chapter 13 to Escape a Tax Payment Plan

Wasson and ThornhillIncome Taxes

Chapter 7 can sometimes help you deal with unaffordable income tax payment plan. But Chapter 13 is often a better way to escape a tax mess.   Tax Agreement Payments Too High We laid out the problem last week. You’d entered into a monthly payment plan with the IRS or your state because you couldn’t pay what you owed. But … Read More