lien on me

[lrj103]

Hi-I live in Texas. I owe back taxes from 1996. I hired a lawyer 3 years ago, signed over power of attorney and filled out a bunch of papers. I have heard from him once and the irs never-until Monday when I got a paper informing me a lien had been filed against me. I called the irs and spoke with someone rather rude . I was offered up a payment plan.
Questions
1. I filled bankrupcy in January for the year of the owed taxes. Does this matter?
2. Should I request a hearing and if so, what kinds of things do I need to know about that.
3. Is my credit ruined forever?
4. What should I do about the attorney that did nothing ?
5. I never got any papers that told me this was going to happen . Does that matter?

Thanks in advance for your help.

 

[loku]

Negligent attorney

1. I filled bankruptcy in January for the year of the owed taxes. Does this matter?

The basic rule is that when a bankruptcy is filed, if the income taxes are over three years old, the tax return has been on file for over two years, and 240 days have passed since the tax was assessed, the taxes may be dischargeable. However, if the internal revenue service (IRS) can prove there was a willful attempt to evade or defeat the tax, the discharge will not be allowed. Some courts have held that a willful attempt to evade or defeat the tax is evidenced by a debtor living beyond his means (vacations, luxury vehicles, etc.) during the time the tax was owed, and thus denied the discharge.

2. Should I request a hearing and if so, what kinds of things do I need to know about that.

If the taxes you owe come under the above rule for discharge in bankruptcy, then you should request a hearing with the IRS, or at least notify them of the bankruptcy.

3. Is my credit ruined forever?

You can eventually build up a good credit rating, but it will take years.

4. What should I do about the attorney that did nothing ?

First, talk to the attorney and find out what happened. You may have a mal-practice suit against the attorney for anything you lose as a result of the negligence.

5. I never got any papers that told me this was going to happen . Does that matter?

The IRS is required to follow procedures. There must be notice of the assessment, etc. If you did not receive the required notices, then maybe they were sent to your attorney, who had power of attorney.