How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Roger Your Own Question

Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 26392
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by West
6704987
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

I presently have an open chapter 7 bankruptcy case in California.

Customer Question

I presently have an open chapter 7 bankruptcy case in California. I also have 17k worth of IRS debt from 2007 which I'm attempting to settle. As I was reading in the "Offer in Compromise Booklet" from the IRS, if I have an open bankruptcy case then I'm suppose to get in touch with the my local IRS Insolvency Office. How might I proceed from there?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 5 years ago.
The Offer-in-Compromise (OIC) program is the only way for you to settle your tax debt for less than what you owe.

There are three payment options: lump sum payment, monthly payments over 24 months or less, or monthly payments over the remaining statute of limitations. Under the new law, applicants must submit a 20% down payment if they choose a lump sum payment plan, or must begin making monthly payments if they choose one of the two monthly payment options.

Also, the IRS intends to crack down on abusive tax preparers who submit offers that do not meet the eligibility requirements. The IRS has also made it easier for you to prepare an offer yourself by making the instructions much easier to read and to follow.

Customer: replied 5 years ago.

Ah yes, but there-in lies the confusion.

 

As per the booklet: http://www.irs.gov/pub/irs-pdf/f656b.pdf

 

Do you currently have an open bankruptcy proceeding? You should contact your Bankruptcy Attorney if you are not certain. If you are involved in an open bankruptcy proceeding, contact your local IRS Insolvency office. If you do not know the location of your local IRS Insolvency office, then you may call 1-XXX-XXX-XXXX. They will be able to provide you with the local number. Any resolution of your outstanding tax liabilities generally must take place within the context of your bankruptcy proceeding. If you answered YES to this question, then stop here. You are not eligible to have your offer considered or processed at this time.

 

It would appear that because I have an open bankruptcy case that I am not eligible for the OIC program and they're referring me to the local IRS Insolvency office.

Expert:  Roger replied 5 years ago.
It is essentially the same process. However, because you have an open bankruptcy, you can't settle directly with the creditor as it would be in violaiton of the bankruptcy rules and also possibly infringe on the rights of other creditors. Instead, you must get the settlement approved by teh court.
Customer: replied 5 years ago.
I see, so do I need to contact my local IRS Insolvency office at all or should I wait until the Chapter 7 discharge is granted then submit an OIC?
Expert:  Roger replied 5 years ago.
<p>My suggestion is that you contact the Insolvency office and try to settle the debt during bankruptcy and have it approved by the bankruptcy court. </p><p> </p><p>It's likely that you'll get more debt relief when you're in bankruptcy.</p>
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 26392
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by West
Roger and other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

I've now been issued a chapter 7 discharge. So at this point I would submit the IRS an OIC and attach a 20% down payment?

 

I did a zero-asset chapter 7 so how would I know what percentage of the tax debt to offer?

Expert:  Roger replied 4 years ago.
You need to contact the insolvency office and work with it to determine the appropriate down payment.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.