BK or OIC

[mark4]

What is the name of your state? CA

I owe both the state of CA and the IRS > $25K due to a lay-off and cashing in a
401K. This goes back to 2001, 2002. My assets are minimal, maybe $3k, no property.
Income has been about $20 to $24K/ year, and have been unable to repay tax debt.

Should I consider BK or an offer in compromise? Thank you

 

[Gregeney]

Income taxes for those years would usually be dischargeable in a bk. Request a tax transcript from the IRS and make note of the assessment date for those taxes. Negotiating with the IRS may not be in your best interest.

I would very much suggest you speak to a bk attorney regarding those taxes.