Many people fear bankruptcy because of the negative connotations associated with it. However, there are times when bankruptcy may be the best solution for dealing with taxes and other debts that have become overwhelming.
Despite common misconceptions, taxes that meet certain criteria may qualify to be discharged in bankruptcy. It may be the best solution to resolve significant tax problems. Pre-bankruptcy planning is vital in determining if bankruptcy is or can be a feasible solution for you. By examining your IRS tax filing history, the tax professionals at BAYSHORE CPA’S, P.A. can prepare an analysis of your account for your bankruptcy attorney with the information needed to file in a timely manner in order to achieve the most beneficial outcome.
Before You File Bankruptcy
If you are an individual, here are some things to consider before filing bankruptcy:
- You must file all required tax returns for tax periods ending within four years of your bankruptcy filing.
- During your bankruptcy you must continue to file, or get an extension of time to file, all required returns.
- During your bankruptcy case you should pay all current taxes as they come due.
- Failure to file returns and/or pay current taxes during your bankruptcy may result in your case being dismissed.
Bankruptcy guidelines may be different for partnerships and corporations.
After the completion of your bankruptcy case, Bayshore CPA’s will work toward resolving any tax matters that were not settled through the bankruptcy filing.
At Bayshore CPA’s, P.A. your peace of mind is our motivation. If you are facing bankruptcy and have IRS tax debt:
Call our office now located in Mooresville, NC at 704-660-9317 to schedule a consultation.