At one point in this country, filing bankruptcy as a way to get out of owing back taxes was a well-publicized method and often practiced. Advertisements on TV and the radio made it seem like this was a fast, painless, and permanent way to start over. The facts and reality of the situation are that only certain taxes can be eliminated by filing bankruptcy and it varies greatly considering the circumstances. Taxes that should be collected by employers such as FITW and FICA are considered trust fund taxes and are not eliminated when an individual files for bankruptcy. Income tax debts can be eliminated but this is not always the case. Even if tax bills are waived in court, the IRS routinely leaves the Federal Tax Liens on a taxpayer’s record. The liens are not enforceable but they do not help individuals trying to establish credit. The only given in this situation is that a bankruptcy is an enormous blemish on a credit report and it takes a decade or more to get out from under one.
If owing back taxes to the IRS is the main reason a taxpayer is considering a bankruptcy, there are much better, more efficient and less damaging ways to resolve the matter. The IRS can grant administrative stays that work the same way but without the gravity and duration of a bankruptcy. All Americans have rights as taxpayers but many of them do not know their options. There are ways taxpayers in such a position can communicate with the IRS themselves and gain back control of their lives and finances. When the IRS is going through the Notice of Balance Due cycle with a taxpayer who owes back taxes, the person still has time to mitigate the ill effects.
Taxpayers can learn how to exercise their rights as a taxpayer and have all the information they need with step-by-step instructions on how to communicate with the IRS with the new software program Tax Closure. This is a product of my company Taxpayers Clinic, and it is the creation of 28 years of taxpayer solutions. Taxpayers Clinic is comprised of a network of former IRS employees who put together this revolutionary program that costs a fraction of what the tax settlement firms charge. Closure works to help taxpayers apply for “Currently Not Collectible” (CNC) status. The CNC status has no effect on issuance of Federal tax liens and has no effect on your credit or credit score. Using the information, detailed instructions, and videos in Tax Closure, most taxpayers can resolve their back tax issues. The informed taxpayer can now communicate properly and directly with the IRS, become current on their tax bill, and avoid excessive headaches. To learn more, please visit www.TaxClosure.com