IRS Bankruptcy
Here’s a quote from a website on IRS bankruptcy that I found. The site belongs to Joe Mastriano, a highly experienced CPA with a lifetime of experience in tax problem solving and IRS representation…
Filing Chapter 7 Bankruptcy
Mostly for individuals, or couples wanting to erase personal debt. But businesses can use too. This choice gives you time to liquidate your assets to fully settle your debts. Many debts are fully dischargeable in a complete disolution. Liabilities such as payroll trust fund (witholding & social security) tax, spousal support, child support, are not wiped out, or forgiven.
You must file all applicable federal, state, and local tax returns, including those that become due after the bankruptcy case starts. Failure to file properly may cause the petition to be converted to another chapter, or dismissed. Do not default your bankruptcy.
The bankruptcy is treated as a new taxable entity, separate from the individual taxpayer.
A trustee is appointed to administer the estate and liquidate any non exempt assets.
If you are looking for help with bankruptcy filing, please visit our website at www.taxproblem.org.
Filing Chapter 11 Bankruptcy
This is a type of reorganization for businesses. The business stays open an operates while it makes provisions for repaying its debts.
You must file all returns as stated above in a chapter 7.
The bankruptcy is treated as a new taxable entity. This entity is separate from the individual taxpayer.
No trustee usually, the debtor remains in control (debtor-in-possession) and acts as the bankruptcy trustee.
All you need to know about taxes and the IRS is available freely on Joe Mastriano’s website, and he also has a comment section where he provides quick tips and advice to his users. If you are ever in need of help with bankruptcy code, call Joe Mastriano’s office and you’ll be in safe hands.