top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

IRS question

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    IRS question

    Wow, it's been along time since I was last here but that is because everything was going pretty well...till now. You guys have helped me before so now I need some new suggestions. Brief summary of why I'm here since it's been so long: my dad filed chapter 7 personal and chapter 11 business bankruptcy. I am happy to say he is being discharged out of ch. 7

    Chapter 11 is a work in process. However my concern and issue now is the IRS. Long story short they are pursuing him personally for the 941 taxes he failed to pay (they were business debts). I estimate he owes around $35,000, these debts stem from the end of 2007 and the beginning of 2008.

    From what I was told by his chapter 11 lawyer (at the beginning) he would pay the debts back over a 5 year period through the business and the bankruptcy office of the IRS has already submitted a claim to the court. However the small business office of the IRS is demanding money. They sent a certified packet to my house at the beginning of August saying they are giving my dad 60 days to respond to them or they will start trying to collect, the money they are asking for is about $20,000 more then what the IRS claimed through the courts.

    My dad asked his chapter 11 lawyer about this but he got the response of "well you owe it, the IRS can do what they want so they will just lien on your interest of your house and that's it." A far cry from what he told us at the beginning of the case. Now I have no idea if things changed and his lawyer feels my dad can not pay it through the business..I have no idea as he won't give my dad a real clear answer.

    So what I am really asking is 1) what the heck is the IRS doing? and 2) is there anything my dad can do to clear this up. His chapter 11 lawyer doesn't want to get involved in this and I feel he should, he wants to pass the buck to my dad's chapter 7 lawyer because it's personal. The chapter 7 lawyer has called the IRS agent twice and has not received a return phone call.

    Any suggestions would be appreciated. From my calculations the 60 days are up the beginning of October.

    #2
    Are the $35K taxes your dad owes, or the business owes? The only taxes that can be paid back through Ch 11 are his business taxes.

    If the taxes are indeed owed by your dad, not his business, since the taxes are less than three years old, it isn't possible to discharge them through bankruptcy. His lawyer is right - he has to find a way to pay them. He needs to figure out how to respond to the IRS within the 60 day timeframe. If his bk lawyer can't/won't help him, then he needs to set up an appointment with an experienced tax lawyer asap.
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

    Comment


      #3
      The taxes are business. They are 941 payroll taxes he didn't pay for two quarters. So now what can he do? This why I don't understand why his chapter 11 lawyer won't do anything about the fact that they are now seeking these debts to be paid by my dad personally. Like I said the IRS has already made a claim through chapter 11 so I don't understand why the small business office is doing this.



      So I can make things clearer, all debts my dad has is business related. He filed chapter 7 personal mainly because of credit cards that were in the business and his name and also one business loan.

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X