… means that a late filed income tax return, unless it was filed pursuant to § 6020(a) of the Internal Revenue Code, can never qualify as a return for dischargeability purposes because it does not comply with the ‘applicable filing requirements’ set forth in the Internal Revenue Code.”

Income tax returns that are filed late may be treated differently in bankruptcy, if they do not comply with the IRS rules. For example, if you filed a late return and did not request an extension, …

Tags: Bankruptcy Chapter 7 Title 11 United States Code Internal Revenue Code tax

Image via Wikipedia

Most people have at least passing knowledge of wage garnishment–the process of deducting money from an employee’s monetary compensation (including salary) as a result of a court order.  Fortunately for those who find themselves in the unfortunate position of having their wages garnished, these payments are limited by federal law to 25 percent of the …

Tags: Bankruptcy Chapter 13 Title 11 United States Code Garnishment Internal Revenue Service tax

… bankruptcy legislation since the Chandler Act of 1938 brought major changes to the U.S. Bankruptcy Code.

 

Bankruptcy is a process that has been refined over several years and through several pieces of legislation.  When looking at the history of bankruptcy, you can usually turn to just a few pieces of legislation that brought major changes to the bankruptcy process.  Of course, there have been small changes all along the way, but one of the most important pieces of legislation that …

Tags: Bankruptcy Code Bankruptcy Reform Act Legislation

Permalink: /bankruptcy/six-important-bankruptcy-code-changes-from-the-bankruptcy-reform-act-of-1978/

… collection efforts of the IRS.  So now, after years of nurturing its reputation as a bulldog, the Internal Revenue Service is trying to embrace something of a teddy-bear image.  It really has become far more accommodating, if not cuddly.  The kinder, gentler IRS is considerably less arrogant and appreciably more humble than it once was.  And with all the new procedures, IRS collection efforts have become so burdensome that authorities are more willing to settle than ever before.”

This …

Tags: Internal Revenue Service tax United States

… overlook this aspect of foreclosure. The tax rules are complex, and subject to interpretation. The Internal Revenue Service will treat a foreclosure as a sale and you will receive a Form 1099C for the amount your lender or a third party bids at the foreclosure sale. You could end up with a tax liability if you have realized gain from the sale. The rules are complex and you should consult a specialist. Many in foreclosure do not realize that that may have to pay tax on a house that they lose …

… hard times. It can be very easy to make a mistake with today’s overly complicated and bulky tax code, as well. If you have a tax debt that you cannot pay, bankruptcy may be the solution you need. Contact a lawyer in your area today to find out if your tax debt can be discharged.

Tags: Income tax Internal Revenue Service Lawyer United States

… a collective $20 billion.

The article said:

A report released Wednesday shows that average tax revenue dropped more than 12 percent in 45 of 47 states that reported data. Texas was in the middle with a 7.6 percent decline in sales taxes from January to March, compared with the same period last year, and Texas Comptroller Susan Combs has said she doesn’t see big relief in sight.

“Most major sectors of the economy continue to struggle,” Combs said this month. “Decreases in …

Permalink: /breaking-news/tax-revenue-drops-drastically/

… based AMR Corp., parent company of American Airlines Inc., lost $375 million (15 percent of its revenue) in the first quarter of 2009.

The article said: “While lower fuel prices have provided a significant buffer against falling demand in 2009, the struggling economy and capital markets remain significant challenges for American and the rest of the industry,” AMR chairman and chief executive officer Gerard Arpey said. “Even as we feel the impact of declining revenues, fares and …

Permalink: /breaking-news/american-airlines-loses-15-percent-of-revenue/

… them.  He stated that the bankruptcy distribution plan met the requirement of the bankruptcy code and that is was essential to the company’s ability to remain viable after emerging from bankruptcy. However, most of Reader’s Digest retirees are unaffected by the company’s bankruptcy plan and will continue to receive pension payments. The opposing retirees were part of a subset of retirees who receive supplemental pension benefits.

Reader’s Digest filed Chapter 11 bankruptcy in …

… plans to file Chapter 11 bankruptcy after getting hit hard by the lagging advertising revenue that sent their balance sheet into a tailspin.

MediaNews said its holding company will file a “prepackaged” bankruptcy …Under MediaNews’s plan, senior lenders will swap debt for equity, helping reduce the company’s debt load from about $930 million to $165 million. Bondholders will get warrants for possible future equity.

Hearst Corp., another owner of many magazines and …

Stimulus payments may equal a bigger tax bill for millions of Americans.  More than 15 million taxpayers may owe the government $250 or more because of how the IRS organized last spring’s tax breaks which were designed to help lift the economy out of the recession. Due to IRS errors everyone from married couples to struggling students may be forced to fork over up to $400 to Uncle Sam

…

Tags: Internal Revenue Service Stimulus tax

One of the crucial changes to the Bankruptcy Code that kicked into effect on October 17, 2005 was the new “means test” requirement.

Courts use the means test to determine whether someone qualifies for Chapter 7 bankruptcy, or if they must file for Chapter 13 instead.  Chapter 7 is the type of bankruptcy most people think of when they hear the word bankruptcy.  This form of bankruptcy allows most if not all unsecured debts to …