Legal Question in Tax Law in California

Re: Tax Filling

Bankruptcy is has very limited applicability on taxes, though it can force a payment plan. There are other methods that may be applicable depending on your own situation such as an Offer in Compromise.

Joel Selik

Attorney At Law-Masters of Laws in Taxation

www.taxworkout.com

800-894-2889

Representing Taxpayers

in all 50 States and Internationally

Re: Tax Filling

Taxes are not dischargeable in bankruptcy, with

one exception which can rarely be met by a taxpayer.

An offer in compromise might be worthwhile, but

you need a competent tax attorney to handle this, as

the assessed amounts may not reflect the true tax

due

Re: Tax Filling

Income taxes are dischargeable in bankruptcy. Unfortunately, you do not qualify because you first must have the returns filed, then wait 3 years (2 years after audit.)Also, your failure to file means you do not qualify for an Installment Agreement nor Offer In Compromise. Additionally, you could be subject to criminal penalties.

The first action you should take is to retain a Tax ATTORNEY (not an accountant!) The attorney will retain an accountant to prepare the tax returns and help shield you from criminal liability by not having to reveal attorney/client confidences.

Next, you should probably look at an Installment Agreement or Offer in Compromise. I have more information on these topics at www.taxesq.com/

Re: Tax Filling

Bankruptcy is not the answer. You need to meet with a tax attorney to truly determine what the best course of action is.

The IRS is harsh with non-filers, more so than non-payers. It is also possible that their assessment is incorrect, adn by filing returns, you could actually owe less. Then, it is possible that you can make an Offer in Compromise, whereby you would pay less than you actually owe.

Regarding the State of Calif., they are probably getting their data from the IRS. Their number is probably much less, too.

Feel free to call me at 925-924-0100 for an appointment.