Sure. Here are eight ways bankruptcy has solved tough IRS problems for Faith Firm clients:
- It Has Eliminated More Tax in Less Time. Filing bankruptcy can be easier, cheaper and more effective than other tax solutions. For example, Chapter 7 takes four months and Chapter 13 takes thirty-six to sixty months to complete. On the other hand, an offer in compromise can take 24 to 48 months to be accepted and completed.
- It Has Stopped IRS Levy Actions Fast. Bankruptcy stops the IRS from taking further action. The instant bankruptcy is filed, the IRS has to back off.
- It Has Been a Better Deal Than an IRS Installment Plan. An IRS installment agreement may cost thousands of dollars more than Chapter 7 or Chapter 13. And an installment agreement takes longer to complete than Chapter 7. Bankruptcy also takes the negotiating out of the equation. The IRS must “take it or leave it.”
- It Has Eliminated More Penalties. Chapter 13 can eliminate or reduce penalties because of the cram down provision. Chapter 7 can eliminate income tax, penalties and interest completely.
- It Has Neutralized IRS Revenue Officers. If you can’t get what you want by negotiating with a Revenue Officer, the bankruptcy code may force the IRS to do what you want, whether they like it or not.
- It Has Stopped IRS Audits. Filing bankruptcy may stop an audit. I’ve witnessed situations where filing bankruptcy terminates the audit process.
- It Has Leveraged a Better Settlement with the IRS. The Internal Revenue Manual permits the IRS to consider what the government would receive from an offer in compromise versus what they would get if bankruptcy was filed. A clever tax lawyer will submit unfiled bankruptcy schedules to make the offer look more attractive.
- It Has Eliminated Other Debt. Bankruptcy can resolve many financial problems at the same time! Tax, foreclosure, car loans, credit card debt, medical bills, and business debt can all be resolved in one bankruptcy filing.
If you want more information on solving your tax problem using bankruptcy and non-bankruptcy solutions, get the free book, How to Get Tax Forgiveness.