26 Oct IRS Tax Debts may be discharged in Bankruptcy
BREAKING NEWS
Stampless entry at SFO. SJC and OAK ports
Effective October 1, 2022, the CBP will adopt the stampless entry on all incoming travelers. If you want a stamp on your passport you should request the CBP officer.
New Regulation will make it easier to immigrate
The Biden Administration will release a regulation by December 2022, making it easier to immigrate for people who have taken public benefits. The public charge under Trump era will be revised significantly.
N-400 Application for Naturalization
The USCIS is now giving priorities to application for naturalization . The reason is obviously to allow qualified immigrants to vote in the coming midterm and presidential election. There are cases when the waiting time is only six months compared to prior years. Pres. Biden is encouraging all qualified to file for naturalization. This is a rare opportunity that all qualified should take advantage of.
DACA reinstated
Pres. Biden reiterated to renew the DACA processing as of August 31, 2022
Arrest and removal of undocumented is now up to the discretion of ICE officer
US Supreme Court did not allow Pres. Biden to overturn the immigration policy of Trump with regards to priority in arrest and removal. With increasing migrants at the border White House is now requiring ICE to deport more migrants under political pressure. It is now a decision to be made by the ICE officer which could include arrest of anyone who is undocumented. It is time to work on your green card now.
IRS Tax Relief in Bankruptcy
As we all know, tax debts can spiral out of control and lead to an IRS tax lien, wage garnishment, or even property seizure. Most people mistakenly believe that taxes are never dischargeable in a bankruptcy. This myth is absolutely wrong! Although there are certain criteria that must be met, bankruptcy relief is often the best way to solve a serious tax problem and stop IRS collection activity. The filing of a bankruptcy case automatically and immediately stays (stops) IRS bank account levies and wage garnishments, and enables the taxpayer to either obtain a discharge or reorganize his or her tax liabilities.
Remember, the IRS is not just any creditor and has the ultimate power to do things other creditors can only dream of. However, if you hire a lawyer before the situation gets worse, there are options and possible solutions available.
Each type of bankruptcy treats IRS tax debt differently. The two most common forms of bankruptcies are Chapter 7 and Chapter 13.
Tax Debts in Chapter 7
Some tax debts are dischargeable through Chapter 7 bankruptcy. If taxes are more than three years old and you filed tax returns related to them more than two years ago, the likely outcome is that you will not have to pay them. Tax obligations that are not dischargeable under Chapter 7 include taxes less than three years old, business taxes, sales taxes, and payroll taxes. In Chapter 7, non-exempt assets are liquidated; any of the leftover IRS tax debts are then discharged unless specific IRS specifications are still not met. If these criteria are not met, the entire IRS tax debt needs to be repaid in whole after the whole bankruptcy process is done. Recent IRS tax debt, meaning not older than three years is not dischargeable.
Tax Debts in Chapter 13
If you are not qualified to file for a Chapter 7 or have decided that Chapter 13 is your best option, non-dischargeable tax debts can be included in your repayment plan. Chapter 13 is the most common of the important tax relief bankruptcy tactics, with some of the IRS tax debt being forgiven. Assets typically don’t need to end up being liquidated; with your income financing the whole payment plan.
In addition, bankruptcy’s automatic stay applies to the IRS as well, meaning all collection efforts pending against you will be stopped. Filing for Chapter 13 will also accomplish two other very important things: Penalties that the IRS has tacked on your tax debt will be discharged, AND, no new penalties or interest will accumulate while you are in Chapter 13. In short, you may pay considerably less money to the IRS by going through bankruptcy than you would if had tried to work out a debt settlement agreement with them on your own.
Note: This is not a legal advice. You should seek the advice of your attorney about your specific case.
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INCOME TAX PROBLEMS
We can help you if you are under IRS audit, need a representation with IRS, need to reduce your tax liability or need to offer a payment plan to IRS,
SUCCESS STORIES
For the month of September 2022, we received approval from USCIS four naturalization applications, two Fiancée visa petition, two removals of condition on residence and two adjustment of status applications.
Note: If you have immigration problems write us a letter and we will reply to you with no initial obligation. The Law Offices of Crispin C. Lozano can help you find a solution before your problem gets worse which could lead to deportation and family separation. You may request a free consultation at one of our offices in Hayward or Cerritos, CA, or by phone at 1-877-456-9266. www.crispinlozanolaw.com, email at info@ccllaw.net