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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4515
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I filed chapter 7. I will bk on tax years 08,09,10,11,12,

Customer Question

I filed chapter 7. I will bk on tax years 08,09,10,11,12,Can I make installment agreement w IRs on my own w IRs for 14 and 15 or do I have to wait and ask court approval or trustee
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from Just Answer. I'mCustomer I will assist.

You should wait for court approval before making any such payment. You have a collection hold on those amounts if you listed the debts on your petition. There are a few good reasons to wait.

If you just filed, and have not yet been granted a discharge, payments you make might be applied by IRS to old assessments, and you will have to go back to court to get them properly allocated to non-dischargeable years. And pay your attorney more $$ to fix things.

Post-petition liabilities might be eligible for installment agreement or Offer in compromise or even uncollectible status, depending on your situation. Since you were eligible for Chapter 7, your income might make you eligible for one or more of those options to settle.

I would not try to negotiate by yourself with IRS, even post-bankruptcy. Especially if your bankruptcy is not completed.

I hope that sheds some light on your options for resolution. Consider engaging a quality tax professional to assist with the post-bankruptcy liabilities. IRS is unlikely to negotiate with you to settle, and will instead press for payments in their interest.

They typically send collection letters to bankruptcy filers for the non-dischargeable liabilities, which may have prompted your letter. Rest assured you should NOT respond until you get a discharge. When you do, I suggest getting a tax transcript to see that indeed the liabilities you are discharging are indeed so recorded by IRS. Then consult with a tax pro to examine your resolution options.

Thanks for asking at Just Answer. Please rate my response using the rating scale provided below. Positive feedback (five stars if warranted) is appreciated. I'mCustomer

Customer: replied 1 year ago.
I cannot afford an attorney. Period. So w your comments I will not do anything w IRs. I already consulted an attorney through the court and he said we qualify to discharge 08-12. We must pay 13-15. Are you saying something else ?
Expert:  PDtax replied 1 year ago.

No. Only tax liabilities that are for more than three tax years old, and assessed for 240 days, qualify. Your last three years, '13-15, are typically the only nondischargeable years.

I did not know you filed pro se. But if you did, and can't afford to engage someone to assist with the bankruptcy or post-petition with a CPA or other tax pro, that you likely would qualify for a settlement with IRS for less than the full amount due.

Since you are going to work with the remaining debts yourself, you should ask that your case be transferred to a Revenue Officer in your area who will work with you AFTER the discharge. And I would research the three options I suggested before your first meeting with the RO, so you can be versed in your options. It is the rare RO who will suggest resolution that is in your best interest.

Never, never try to negotiate with ACS personnel. They are bill collectors first. And you do not get to work with the same person when you call. If you get nothing else from this response, please ask, in writing, for a transfer of your case to a Revenue Officer for resolution.


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