Tax Issues in Bankruptcy

Tax issues in bankruptcy cases can have an unanticipated Impact. JCH Law Firm suggests that you always consult with a tax professional when facing a tax issue.

Discharging Civil Tax Penalities In Bankruptcy

Posted by on Feb 13, 2012 in Tax Issues in Bankruptcy | 0 comments

Oftetimes, persons facing tax issus are dealing with penalties that may or may not be dischargeable in bankruptcy.   The key in such cases is determine if 1) the underlying tax is dischargeable, or 2) if the event that caused the penalty to take place occured more than 3 years prior to the bankruptcy .   The persons facing these type of tax problems only have to meet 1 of the above criteria...

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Cancellation of Debt Income, Form 1099-C, & How it Relates to Bankruptcy

Posted by on Sep 9, 2011 in Chapter 7 Bankruptcy Issues, Discharge in Bankruptcy, Tax Issues in Bankruptcy | 4 comments

When a creditor gives up collecting on a debt that is in default status, the creditor may decide to charge-off that debt.  A charge-off occurs when a creditor attempts to get a tax break from the IRS.  The creditor must send the debtor an IRS form “1099-C Cancellation of Debt” to the debtor and the IRS.  While the creditor gets a tax break, the debtor must absorb the COD...

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