Have a Tax Question? Ask a Tax Expert
Thanks. One, I would first respond to them letting them know these taxes, according to your lawyer, were discharged in your bankruptcy. Include in your correspondence the documentation of your bankruptcy discharge which should include the taxes. Unless you notify them, they have no way of knowing. In this case, that would be the end of it. Two, if for some reason, they were not discharged, there are options available to you other than losing your home, your car, and your SSI. A taxpayer unable to pay the full amount of taxes due can dealwith the IRS in one of two ways: i) if the taxpayer can pay it within 60months, the IRS will work out an installment payment arrangement with thetaxpayer; if the amount due is under $50,000, the taxpayer can do this on-line;or ii) if not, the taxpayer would want to file an application for an Offer inCompromise where the IRS will agree to forgive all or a portion of it thatcan't reasonably be paid within the 60 month period. There is a step by step process for filingthe Offer in Compromise application, as well as the full details of theprogram, in the IRS Offer in Compromise booklet which you can find at thefollowing website: www.irs.gov/pub/irs-pdf/f656b.pdf
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