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Can I stop irs from levying for discharged taxes ?
Anonymous7 views5 answers
Irs is threatening a levy on taxes that were discharged in my chapter 13 case. Isn't that illegal. They are giving 10 days to pay and you cannot get them in the phone. I am in the office waiting and wondering if there is a statute that will protect me.
Well, the problem is that the IRS may not agree that these taxes have actually been discharged. There are a lot of times in which bankruptcy attorneys will file a Chapter 13 or Chapter 7 case, and the attorney has not done adequate investigation into whether or not the tax in question is dischargeable. Did you have an attorney, and have you spoken with him or her? If not, please do so immediately. Have you pulled your IRS account transcripts for the tax years in question? If not, then do so immediately to verify that the proper IRS codes have been implemented. You should continue to try calling the IRS. Yes, there are long hold times, but still you can get through if you call early in the morning or late in the afternoon.
Outside of the issue of whether the taxes are in fact able to be discharged and assuming they are, you may want to talk to the IRS Taxpayer Advocate's office in your area for emergency assistance if you cannot get anywhere otherwise.
Call you Bankruptcy attorney right away. The Bankruptcy attorney can provide you with the Petition and information to show the taxes were discharged, If they were not discharged, you will need a tax lawyer to help you get an installment agreement.
I hope this helps!
Ron Cappuccio
In a chapter 13, a late-filed return but filed within the 2 years prior to the BK filing is NOT dischargeable, but, on the Proof of Claim, it shows up as "general, unsecured" - the same place dischargeable taxes are listed by IRS. It could be your attorney saw the POC and thought that. My dollar says that's the issue.
Have your attorney use the Tax Discharge Determinator (www.TaxDischargeDeterminator.com) as the only on-line program designed to tell the user the earliest date a tax is dischargeable (and would warn about things such as the 2-yr rule).
My friend Larry is correct. It could be that your BK attorney made a mistake, as they sometimes do. Not all tax liabilities are dischargable. If your BK attorney didn't pull up your IRS transcripts, then he or she may have missed something. I have a case like this right now. If the IRS filed a substitute return on your behalf and you never filed a tax return for that tax year, then the tax liability was properly assessed and it isn't dischargable pursuant to the BK code section 523. Seek a tax attorney to have your tax transcripts reviewed. If the BK attorney did something wrong, you may have a malpractice claim. Most clients don't want to sue their BK attorneys, they just want the matter resolved. That may involve calling the BK department at the IRS or trying to otherwise settle your tax liabilities through an offer-in-compromise or installment agreement or putting you into currently not collectible status. Best of luck.