Bankruptcy and IRS Offer In Compromise?

[quest42]

What is the name of your state? CA

My financial life has been a disaster since a layoff and divorce in 1998.

I have tax debts from 1998 as well as 2000 (not yet filed) 2001 and 2002 (filed but not yet paid) with a total liability over $50,000 -- Federal and State (CA).

I again lost a job in 2000 and took money out of a 401k to pay debts and expenses (yeah, that was really a stupid thing to do!) Last year, I paid tax and the small refund was applied to my tax debt. I have been unemployed and working part-time, doing temporary work, with unpredictable income, averaging under $1,000 per month, since 2002... barely surviving, with insufficient income and assets to pay debts.

I filed a Chapter 7 bankruptcy (pro-se) in October with a large tax liability and $50k consumer debt... and had my 341 meeting two weeks ago -- the trustee reported no assets to distribute. My deadline for objections is mid-January, 2006.

I have no money to pay an Enrolled Agent or Tax Attorney... so I am going to have to do all this pro-se, by myself... but have plenty of time to devote to it.

I am in the process of getting my records together so I can file all my Federal and State tax returns in December.

Meanwhile, here are some of my questions:

1. Is anybody willing to share personal experiences about an IRS Offer In Compromise done with or without professional help?

2. Can I do an Offer-In-Compromise (OIC) while I am in bankruptcy, or must I wait for my discharge?

3. Should I file an Adversary Complaint in Bankruptcy court to get a judge's determination on the dischargeability of my tax debts? I was assessed over $50,000 taxes, but did not yet file for 1998 and 2000.

Any suggestions?

[seniorjudge]

Originally Posted by quest42

What is the name of your state? CA

My financial life has been a disaster since a layoff and divorce in 1998.

I have tax debts from 1998 as well as 2000 (not yet filed) 2001 and 2002 (filed but not yet paid) with a total liability over $50,000 -- Federal and State (CA).

I again lost a job in 2000 and took money out of a 401k to pay debts and expenses (yeah, that was really a stupid thing to do!) Last year, I paid tax and the small refund was applied to my tax debt. I have been unemployed and working part-time, doing temporary work, with unpredictable income, averaging under $1,000 per month, since 2002... barely surviving, with insufficient income and assets to pay debts.

I filed a Chapter 7 bankruptcy (pro-se) in October with a large tax liability and $50k consumer debt... and had my 341 meeting two weeks ago -- the trustee reported no assets to distribute. My deadline for objections is mid-January, 2006.

I have no money to pay an Enrolled Agent or Tax Attorney... so I am going to have to do all this pro-se, by myself... but have plenty of time to devote to it.

I am in the process of getting my records together so I can file all my Federal and State tax returns in December.

Meanwhile, here are some of my questions:

1. Is anybody willing to share personal experiences about an IRS Offer In Compromise done with or without professional help?

2. Can I do an Offer-In-Compromise (OIC) while I am in bankruptcy, or must I wait for my discharge?

3. Should I file an Adversary Complaint in Bankruptcy court to get a judge's determination on the dischargeability of my tax debts? I was assessed over $50,000 taxes, but did not yet file for 1998 and 2000.

Any suggestions?

[url]http://forum.freeadvice.com/search.php?searchid=884160[/url]


The reason no one is answering your posts is because you double-post and you do not keep all your questions in your original thread.

You are getting everything confused.


Just thought you would like to know!

[Ladynred]

First of all, the taxes due on the UNfiled tax returns are not dischargeable. Taxes due for returns that WERE filed, if they're more than 3 years old are usually dischargeable, so you could possibly get out from under some of that tax debt.

You need to find a Taxpayer Advocate in your area. Many provide services for free, others on a sliding scale, you'll just have to find one in your area. They are there specifically to help consumers work with the IRS, and CAN help with your OIC.

I think you're going to have to wait until your discharge to do the OIC.

[onestepahead]

Check the OIC forms. I think you'll find a BK question that says you can't make an OIC until your case is discharged (or otherwise terminated).

[quest42]

California

Ladynred
MemberYou need to find a Taxpayer Advocate in your area. Many provide services for free, others on a sliding scale, you'll just have to find one in your area. They are there specifically to help consumers work with the IRS, and CAN help with your OIC.

Thanks, Ladynred!

10/11/05: bought [url]www.form7.com[/url] software
10/14/05: Filed Ch 7 BK Petition pro se skeleton
10/27/05: Filed all schedules, etc.
11/17/05: 341 meeting (done!)
01/16/06: Last day to file objections
01/18/06: Discharged, closed

[URL=http://www.furl.net/members/geofan49/Bankruptcy]Bankruptcy LINKS[/URL]