What If You Already Owe Income Tax?

Wasson and ThornhillIncome Taxes

no taxes without representation

Photo by Donovan Reeves on Unsplash. What if you already owe a prior year (or more) of income tax, regardless whether you expect to owe for 2020? What should you do and not do? What if you owe 2020 income taxes even though the IRS is not taxing $10,200 of unemployment income that year? That was our topic last week. … 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

Income Tax Penalties and Interest in Chapter 13

Wasson and ThornhillIncome Taxes

Chapter 13 can save you money with both already accrued and ongoing income tax penalties and interest. So you pay less and finish faster.   Last week we got into the advantages of paying priority income taxes through a Chapter 13 “adjustment of debts” case. Those are the usually-recent income taxes which cannot be written off (“discharged”) in bankruptcy. Today … Read More

Timing for Writing Off Income Taxes

Wasson and ThornhillTax Debts

Usually you can discharge–write off–an income tax debt by just waiting long enough. Here’s how to discharge a tax debt under Chapter 7.

Summary about the Automatic Stay

Wasson and ThornhillAutomatic Stay

During the last 13 blog posts we’ve covered the automatic stay–crucial protection that filing bankruptcy gives you. Here’s a helpful summary.

A Fresh Start on the Income Tax Lien against Your Home

Wasson and ThornhillTax Liens

If the IRS or state has recorded a tax lien on your home, sometimes a Chapter 13 “adjustment of debts” can get rid of both the tax and the lien.   Income Taxes that Can Be “Discharged” (Legally Written Off) If you owe an income tax debt, it can be discharged like most other debts. The tax debt just needs to meet … Read More