Filing Bankruptcy against IRS

[Mark6147]

What is the name of your state? GA
Currently I think I owe about $100,000 in back taxes due to an attorney telling me my Long Term Disability benefits were non taxable. Come to find out they are. They are not through Social Security, but through an Insurance Company. So, I had to file all those years and now it is up to an amount that I just can't handle along with my medical bills. Can a person file a Chapter 7 or Total B/R against the IRS for federal Taxes. I realize it would hurt my credit, but I'm dammed either way. Currently I am dealing with Federal Tax, I'm sure state is soon to follow. But in my defense there, I moved several times to states that had no state tax. HELP!!!!

 

[diannamichaelso]

Unless your IRS debt is more than 5 years old...You cannot file a Chapter 7. You must repay them part of the amount owed through a Chapter 13

 

[irsos]

Unless your IRS debt is more than 5 years old...You cannot file a Chapter 7. You must repay them part of the amount owed through a Chapter 13

This is not true.

If the income tax debt meets all five of the rules below, then the tax debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions.

The due date for filing a tax return is at least three years ago.
The tax return was filed at least two years ago.
The tax assessment is at least 240 days old.
The tax return was not fraudulent.
The taxpayer is not guilty of tax evasion.

 

[LdiJ]

What is the name of your state? GA
Currently I think I owe about $100,000 in back taxes due to an attorney telling me my Long Term Disability benefits were non taxable. Come to find out they are. They are not through Social Security, but through an Insurance Company. So, I had to file all those years and now it is up to an amount that I just can't handle along with my medical bills. Can a person file a Chapter 7 or Total B/R against the IRS for federal Taxes. I realize it would hurt my credit, but I'm dammed either way. Currently I am dealing with Federal Tax, I'm sure state is soon to follow. But in my defense there, I moved several times to states that had no state tax. HELP!!!!

100,000k is an awful lot of tax to come from long term disability payments....even taking penalties and interest into consideration. How did you find out that you need to pay tax?, and how many years worth of returns did you file? Also, was this insurance an employer benefit, or did you pay the premiums yourself? Did you get advice from a tax professional before filing the returns?

 

[Mark6147]

IRS DEBT and Bankruptcy

My LTD benefits alone were $65000 a year, then you have to factor in SSDI benefits and that lump sum payment I received. It appears 77% of my LTD benefits are taxable. I received a bill for 2005 for almost $12000, so I can only imagine what it would be for the past 7-8 years with penalties and interest. I just guessed at the $100,000 figure, but I think it would be very close when you add up all those fees..... I haven't filed taxes since 2001.....
thanks

 

[LdiJ]

My LTD benefits alone were $65000 a year, then you have to factor in SSDI benefits and that lump sum payment I received. It appears 77% of my LTD benefits are taxable. I received a bill for 2005 for almost $12000, so I can only imagine what it would be for the past 7-8 years with penalties and interest. I just guessed at the $100,000 figure, but I think it would be very close when you add up all those fees..... I haven't filed taxes since 2001.....
thanks

Ouch!

You need a tax attorney.