| After Reform: Delinquent Taxes Can Still Often be Erased in Bankruptcy: New Booklet Explains Rights |
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| Written by Administrator | |
| Wednesday, 12 May 2004 | |
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Dublin, CA (PRWeb) February 16, 2007 -- Despite a major overhaul of the United States Bankruptcy Code enacted in 2005, many taxpayers suffering the agony of staggering tax debts are able to find relief in the bankruptcy courts. Congress enacted the reform act, titled "The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," ostensibly in order to weed out undeserving consumers who deliberately run up debts with lavish lifestyles, or attempt to hide assets from their creditors. As part of the overhaul, the ability to discharge old tax debts was tightened up, but not eliminated. In fact, the right to extinguish old, unpaid income tax liabilities in a simple Chapter 7 was left intact, and in some circumstances in Chapter 13, as well. Dublin, California attorney Morgan King's newly released booklet, "Legal Help For Delinquent Taxpayers," explains in simple terms several important remedies and defenses available to beleagured taxpayers. One of these remedies is bankruptcy. In a nutshell, income taxes that are over three years old, and for which the taxpayer filed a tax return more than two years ago, can typically be discharged in bankruptcy. Once discharged, the tax collecting agency, be it the IRS or a state income tax agency, is forever prohibited from coming after the taxpayer personally for the tax liability. Levies on bank accounts and paychecks must cease, and assets acquired by the taxpayer following the bankruptcy may not be seized to pay discharged taxes. If the tax is discharged, so is the accumulated mountain of interest and penalties attached to the liability. King's booklet explores other solutions, as well, including offers-in-compromise, innocent spouse, post-nuptial property agreements, due process hearings, statutes of limitations, and voluntary installment plans. King's booklet may be ordered online at King's web site, www.TaxJustice.com. Click on the "Books" button at the top of the page. PRESS RELEASE CONTACT: Morgan D. King (925) 829-6460 |
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| Last Updated ( Thursday, 06 March 2008 ) |
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