What UK students need to know about claiming a tax refund
If you have a payroll tax problem you may want to call Tax Attorney Darrin T. Mish
Bankruptcy. I’ve bet you’ve heard that taxes can't be discharged in bankruptcy, haven't you?
In fact, you could leave this podcast or you could leave this video that you're watching online right now, and you could Google taxes dischargeable bankruptcy. You’ll probably find some sites from bankruptcy lawyers who are just wrong. They're misguided. They're either ignorant or they're lazy. And they’ll tell you that taxes can never be dischargeable in bankruptcy.
Good news for you! Nothing could be farther from the truth. In fact, the reason that bankruptcy lawyers I think are confused is because the statute is kind of confusing. There are actually two to three double negatives in each one of these sentences. I’m not going to read the statute to you verbatim because frankly, it is confusing. Let me tell you what the three basic rules for the dischargeability of taxes in bankruptcy.
1. The returns have to have been due at least three years, including extensions.
2. The returns, if filed late, have to have been filed for at least two years.
3. The taxes have to have been assessed for at least 240 days.
That’s it for a chapter 7 bankruptcy; those are the three dischargeability rules. There are two other a little bit more minor rules.
The fourth one is there can’t have been any fraud involved and there can't have been any willful evasion or avoidance of paying the tax. We don’t really know what that means yet. We don’t know how aggressive the IRS is going to get, but we just wanted to point that out. There is actually five rules; three of which are very important.
There have been a lot of rules lately that have changed since October of 2005 which govern whether or not you're going to be eligible for a chapter 7 bankruptcy, which is a liquidation bankruptcy, but it’s really the best deal for a debtor.
In a chapter 7, if you qualify, basically your debts are wiped out in most states and you're left with no debts, but you get to keep most of your assets. In Florida, where I’m sitting right now, our bankruptcy laws are really nice. You get to keep your homestead in an unlimited amount in most cases.
Lots of exceptions, lots of details, lots of rules. But I just wanted to point out that taxes can be dischargeable in bankruptcy in many cases, and you should talk to qualified bankruptcy counsel who actually has time to sit down and talk with you when you're talking about discharging taxes and bankruptcy.
If you never get to meet your bankruptcy lawyer, and they have a paralegal fill out all the paperwork, and they say “hmmm, we’ll see. Maybe your taxes are dischargeable in bankruptcy.” Run!! Run very far away.
If you need a detailed analysis to whether or not your tax situation would be covered or governed by a bankruptcy and whether that would be a great option for you, give us a call at 888-getmish (888-438-6474), and I can go ahead and do a detailed bankruptcy analysis just for you.
I’m not a bankruptcy lawyer, but I understand this part of the law very well, and I can work with your bankruptcy lawyer to get the best result for you if you think you're going to have bankruptcy and you have tax debt anyway.
Hi. Today, we’re going to talk about the discharging of taxes and bankruptcy again. And that’s because my good friend, Attorney Jonathan Ginsberg of Atlanta, Georgia, posted a comment on my blog for my June 12th blog post on the discharging of taxes and bankruptcy, and he made a couple of very interesting points.
The first thing that he said was that liens can often survive a bankruptcy and a chapter 7. He also indicated that taxes can be discharged in a chapter 13, as well. So I’m going to address both of those points.
Before I do that, I want to direct you to Jonathan’s excellent website at thebklawyer****. It’s a really great blog. It has to do with filing of bankruptcies in general and filing of bankruptcies in Georgia, in particular. I want to encourage you to go check that out. www.thebklawyer****.
First of all, he said that liens can survive a chapter 7 sometimes in a chapter 7 bankruptcy, and he’s right. If you own real property, which is real estate, and a lien is filed while you own that real estate, then the lien attaches to the real estate. In a bankruptcy, if you have equity in that real estate, the lien is going to survive that bankruptcy most likely.
Interestingly, if you don’t have equity in that property at the time of the discharge of the bankruptcy, then we can often get the IRS to release that lien because post petition property is not supposed to be subject to lien. The liens are supposed to be discharged in that scenario. Here’s what that means.
If you did not have equity at the time of the bankruptcy, then the IRS is not entitled to your after acquired equity. Hopefully that makes sense to you all.
#2. He also indicated that taxes can often be discharged in a chapter 13, and that’s also true.
In a chapter 13, the IRS – or actually the bankruptcy court – uses the IRS’s financial standards to determine the debtors ability to pay. We really don’t want to be there because the IRS financial standards are really unreasonable but, in fact, taxes can be discharged in a chapter 13. We’re finding that more and more tax bankruptcies can be filed and not subject to a chapter 13, which is where you want to be.
If you're very interested in that, then give us a call at 888-438-6474, and maybe we can do a bankruptcy analysis on your case.
Otherwise, take care and bye for now!
Have you thought about all the tax benefits you can receive this year? You may be among the one in four eligible taxpayers who, according to the IRS, fails to claim the Earned Income Tax Credit.
The Earned Income Tax Credit, or EITC, helps low and moderate-income workers and working families. More than 22 million taxpayers received more than $43 billion in EITC on their federal income tax returns last year.
While the EITC is a popular credit, it is often confusing for many taxpayers. There are earnings limits for eligibility and rules for claiming dependents. Ordinarily, you must have earned income as an employee, independent contractor, farmer, or business owner. Some disability retirees are also eligible.
Military service men and women receive special treatment with regard to the EITC. They may include their combat pay, which is non-taxable, as income just for purposes of calculating the EITC. By doing so, they may be able to increase their tax refund.
The tax preparers at Jackson Hewitt Tax Service can help you determine whether you qualify for this credit and then assist you in claiming it on your tax return. You can call 1-800-234-1040 or use the office locator on this website to find the Jackson Hewitt nearest you.
Produced for Jackson Hewitt Tax Service Inc.
Whether you are filing for the first time or have been filing for years, it is not easy to keep up with all the latest tax law changes. If you are not aware of all the changes and how they affect your tax return, you may end up leaving money on the table.
According to the IRS, over $246 billion dollars was refunded to individuals last year alone. There are a lot of new deductions and credits this year. Your tax preparer can help you navigate through all the new rules to help maximize your tax refund or reduce the amount you may owe.
For example, if you provided support last year for a child in your household who is unrelated to you, you may be able to claim a deduction for that child due to new rules for dependents.
If you bought a house or refinanced your mortgage last year, you may be able to deduct your mortgage insurance premiums or PMI.
There are also new laws that can help if you have been affected by a home foreclosure. If your home has been foreclosed on, you may qualify for a tax break on the amount of debt forgiven.
And, even with the late breaking law changes, over 4 million taxpayers will be affected by the Alternative Minimum Tax this year.
Jackson Hewitt Tax Service offices are open nationwide to help you understand all the new laws and how they may affect your tax return. You can call 1-800-234-1040 or use the office locator on this website to find the Jackson Hewitt nearest you.
Produced for Jackson Hewitt Tax Service Inc.
Executive Tax Director Breaks Down What President Bush’s
Economic Stimulus Package Means for Taxpayers
An estimated 130 million taxpayers are eligible to receive their share of $168 million in economic stimulus payments beginning in May. But, questions remain about how much people will get, when they’ll get it, and how the infusion of cash affects taxpayers’ bottom lines this year and in 2009.
Some taxpayers aren’t even sure if they qualify for a stimulus payment, and if they do, how they should go about getting it. Amy McAnarney can address all of the questions about the economic stimulus package, including: who is eligible, how much money can they expect to get, when will the money be distributed, and – the question that confuses most people – how the economic stimulus package affects taxpayers’ 2007 and 2008 tax returns and refunds?
Talent/Guest: Amy McAnarney/Executive Director, H & R Block Tax Institute
Amy McAnarney is the executive director of the Tax Institute at H&R Block. McAnarney is a CPA with more than 18 years in public accounting and executive finance positions.
Produced for H & R Block
Two centuries before the internet delivered infinite information at lightning speed, Benjamin Franklin said, "In this world, nothing is certain but death and taxes." Fortunately, new internet-based services are making tax preparation and personal financial management much easier. As tax season rears its ugly head this year, consumers have access to new, easy to use online money management tools to better manage spending and investments. Using these tools, while following the basic principles of personal finance, can ease the pain of filing taxes - this year and next.
The days leading up to April 15 can provide a sobering picture of last year's income vs. spending, and it's a natural time to evaluate basic financial habits. But where do you start? An online search shows that there have been more than ten thousand books written about personal financial management. It's easy to become overwhelmed.
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*******www.craftmarketer****/tax-deductions.htm Tax deductions guide for home based business owners who often overlook deductible expenses.
Useful information, tips, tricks and links to valuable resources about tax software, tax help and online tax preparation in 2008. To find more visit:www.TaxTipsWeb****
efile your tax return every year to ensure you get your tax refunds. The government WANTS to give you your money back, so claim it! There's a 3 year statute of limitations for tax filing, so do it now for as far back as 2004.
The IRS offers reprieve from the Alternative Minimum Tax (AMT) for 2007, ensuring the amount of AMT most people will have to pay is minimal. The affect of the IRS' AMT patch is that 2.4 million people will have to pay it as opposed to 18-20 million.
If you e-File your taxes, you lessen your chance of being audited. After you send your paper form to the IRS, it's input into the IRS' computer database by hand, which can lead to mistakes. By e-filing it, you can avoid or correct any mistakes.
File your 1040 tax return to qualify for the economic stimulus package.
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