Income Tax Archives - Robert J. Adams & Associates

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Category: Income Tax


Can I Discharge IRS Taxes In Bankruptcy?
May 28, 2020

IRS debts can be discharged in a Chapter 7. Eliminating Tax Debt in Bankruptcy The following set out the rules to discharge an IRS debt in Bankruptcy: You filed the Income tax return. At times the IRS files substitute returns when an individual has failed to file. Another name for this is Service Filed Returns. The amounts due on IRS filed returns are not dischargeable. The tax is for income-an income tax. You cannot discharge payroll taxes. The tax debt is at least 3 years old. Generally, the due date is April 15th. If April 15th falls on a Saturday… Read More

It Is Income Tax Refund Time. Who Can Take It From Me?
March 17, 2020

Some people are afraid to file their income tax returns. Why? One fear is that creditors will take it. First of all, private collectors can’t take or garnish your Income Tax refund. Who can? The Federal Government and state government agencies Past IRS debt; Past due child support payments; Other federal agencies (such as student loans in default); Past due state income taxes; Unemployment compensation you must payback. What about a judgment against me for a credit card? They can’t take your income tax refund. What happens when my refund goes to my bank? If there is a bank garnishment… Read More

Tax Reminder As 2015 Comes To An End
December 9, 2015

If you or anyone you know is contemplating bankruptcy, December 31st is an important date. If your bankruptcy case is filed before the year ends, you can keep your income tax refund. Once the year is over, however, the IRS or the student loan collector are allowed to take the refund to apply it to the various governmental debts. Refunds are often thousands of dollars that could be taken if you don’t act before 2015 comes to an end. April 15, 2016 is another important date. Once that day passes, taxes owed for 2012 become dischargeable in bankruptcy cases. The… Read More

1099-C: TAX CONSEQUENCES OF FORGIVEN OR SETTLED DEBTS
March 6, 2014

The IRS requires creditors to issue a 1099-C form to individuals who have had their debts forgiven or settled for less than the amount owed. It applies to debts in excess of $600. www.irs.gov I don’t owe the money but now the IRS is sending me a huge tax bill!! What’s going on and what can I do? Income From a Debt You Didn’t Pay? Sounds Crazy What does this mean? Essentially the amount of the debt forgiven is treated as income to the tax payer. For example a creditor ceases trying to collect a debt of $5,000. That means… Read More