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.
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...Read More
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...Read More