The Truth About IRS And Bankruptcy
Bankruptcy is often viewed as an admission of failure or a defect of character. But, bankruptcy is not a desperate move but a second chance to rebuild your financial future.
However, filing for bankruptcy isn’t pleasant or simple. It can be easy to get tangled up in the hoops you have to jump through and get into trouble with the IRS. That’s right!
So before filing, ensure you’ve looked at all the information about bankruptcy and consider hiring a financial professional. As experts in the field, we at Christopher G Carmona CPA, APC want you to understand what really happens when you declare bankruptcy. For your benefit, we have compiled information regarding IRS and bankruptcy in order to help you.
Bankruptcy and the IRS
Section 362 of the Bankruptcy Code provides that, with few exceptions, all collection activity by creditors must cease once the client files for bankruptcy.
This includes the IRS and its efforts to pursue the collection of back taxes. So one of the immediate benefits of filing for bankruptcy is that it can put a stop to all IRS and state revenue departments’ collection efforts against the taxpayers and their property.
The bankruptcy effectively removes the case from the IRS Collection Division and moves it to the IRS’s Insolvency Unit, which deals with bankruptcy cases. This can give a taxpayer immediate relief in working out a plan through bankruptcy when the IRS may have otherwise been unwilling to work with the taxpayer.
Now that you know what bankruptcy is and how it works, you can start exploring your options with a bankruptcy expert and put yourself in the best position to succeed.
If you are looking for a CPA firm in Diamond Bar, CA, reach out to the experts at Christopher G Carmona CPA, APC. If you’ve received an IRS letter, or other tax correspondence from the IRS, a state agency, or a local agency, it can be difficult to know what to do next. We represent clients who owe IRS penalties, interest, and taxes. We offer our services across Diamond Bar, Los Angeles, Oceanside, Orange County, Riverside County, San Diego County, and the surrounding areas.
Get in touch with us today!
To learn more about the services we offer, please click here. To get in touch with us, please click here or call us at (800) 227-2891 or (323) 707-6148, or email us at Christopher@SettleMyTaxDebts.com or ChristopherCarmona@hotmail.com.