The IRS is scary. They can do more than any other creditor in terms of collections. They can put liens on your property, including your homestead. They can garnish your bank account. They can sell your stuff. They can close your business and liquidate it. And if you try to call the IRS, you could be on hold for 1 to 2 hours and if you are lucky enough to speak to a representative, they may tell...
If you are in a chapter 13 bankruptcy, then your tax refund is likely the only chance you have at trying to get ahead. However, the Chapter 13 Trustee will almost always attempt to take your tax refund while in a chapter 13. If you want to keep your tax refund, there are several things that may help. The Trustee’s default position depends on your jurisdiction. In Dallas and Fort Worth, the Trustee will allow you to keep...
What is an IRS Levy? An IRS Levy is a tool used by the IRS to reclaim back taxes. It allows the IRS to freeze your wages, retirement funds or bank accounts and withdraw any available funds to pay off your debt. The IRS does not care about the bills you have to pay or the fact that you may need to put food on the table. Once they have their levy, they will use it...
My Debt Was Forgiven, Now What? When a mortgage company or even credit card company cancels or forgives your debt, there could be serious IRS implications. In other words, you are not out of it. Typically, when a company forgives or cancels a debt, they will mail out a form 1099-C to the individual debtor. If you do nothing at this point, that debt will become part of your gross income and you will be required to...