Late Filed Returns and Bankruptcy

Historically, a taxpayer could late file tax returns and, after a two-year window, discharge the taxes in a Chapter Seven bankruptcy. Even if the IRS had done Substitute for Returns (SFR), the taxpayer could discharge the taxes if he or she met the two-year rule. In 1999, a court case, Hindenlang, ...
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Recovering Tax Defense and Costs

When you decide to fight the IRS or a state tax agency, the cost of fighting must be considered.  It is sometimes cheaper to lose than it is to win.  It is a business decision to challenge the agency. Two Internal Revenue Code provisions allow for the recovery of fees and costs.  IRC Code sec [&h...
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IRS Contempt of Court in Bankruptcy

There was a time the IRS and State taxing agencies could not be sued for overzealous or unlawful collection pre or post bankruptcy;  this was the doctrine of sovereign immunity. On October 22nd, President Clinton signed the Bankruptcy Reform Act of 1994.   This law contained amendments that unequ...
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