Can a Taxpayer Keep an IRS Tax Refund Received Shortly Before Filing Bankruptcy?
An Illinois taxpayer received a $10,000 refund about a month before filing bankruptcy. The taxpayer identified the tax refund in amended Schedule B as “2013 Tax Refund (Earned Income Credit)...
View ArticleAre Estimated Tax Payments Paid to the IRS Protected from Seizure in Bankruptcy?
Yes, estimated tax payments made to the IRS immediately before filing bankruptcy could be protected from seizure by the Chapter 7 trustee, according to In re Mooney, 526 B.R. 421 (Bankr. M.D.GA 2015)....
View ArticleWill I Lose my Tax Refund if I File Bankruptcy?
Here’s a common fact pattern. A taxpayer files bankruptcy in June of a tax year and receives an IRS tax refund in April of the following calendar year. What happens to the non-exempt portion of the...
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The IRS Seized the Corporation’s Assets. Can a Corporation File Bankruptcy...
I’m often asked how a corporation can eliminate its tax debts. Typically, the corporation has withheld taxes from its employees’ paychecks but has not tendered these “trust fund taxes” to the IRS or...
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Don’t Trust the IRS’ Advice, it May be Wrong!
What recourse do taxpayers have if they wrongly rely upon the IRS’ bankruptcy advice? None according to In re Brown, 533 B.R. 344 (Bankr. M.D. FL 2015). There, taxpayers followed the IRS’ inaccurate...
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Can a Bankruptcy Trustee Force the IRS to Surrender Trust Fund Taxes Paid by...
It is not uncommon for a for-profit corporation to outsource payroll services to an independent payroll company (“Payroll Provider”) to help administer payroll tasks. A corporation typically advance...
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Can the IRS Intercept a Tax Refund to Pay Non-Tax Debts Owed to Other Federal...
Absent bankruptcy, the federal Treasury Offset Program (“T.O.P”) allows the IRS to offset a non-tax debt owed by a taxpayer to a federal agency against a federal income tax refund owed to the taxpayer....
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