What if I can pay non dischargeable tax debt even over a five year Chapter 13 plan?
Consider an offer in compromise to the IRS. The IRS can negotiate with taxpayers (or non payers, as it were) to compromise tax claims based on either doubtful liability (you really don’t owe that much tax) or doubtful collection (you don’t have resources to pay the tax you owe). Click here for a good article on offers and here for the IRS’s overview of the process. The IRS generally expects you to pay to them whatever is excess over their view of what it should cost you to live for 50 months or the remainder of the collection statute. Check out the IRS standards for allowable housing and living expenses used in evaluating offers. (If you live in a high cost of living area like the San Francisco Bay Area, you can read and weep, or laugh, as you chose.) Currently, the IRS is under mandate to alter its policy that it wouldn’t consider an offer in compromise while a bankruptcy is pending. How this will develop is an ongoing saga.
Related Questions
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- What if chapter 13 bankruptcy looks like the right plan for me but I do not have the money to pay a lawyer?
- What if I can pay non dischargeable tax debt even over a five year Chapter 13 plan?
