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Video instructions and help with filling out and completing How Irs Form 13844 Bankruptcy

Instructions and Help about How Irs Form 13844 Bankruptcy

Hi, today we have an interesting question about discharging taxes in a Chapter 7 bankruptcy. The question is, "I want to file a Chapter 7, I'm certain the IRS debt will be discharged, but how can I get the lien lifted?" My name is Darren Mitch, I'm a tax attorney from Tampa, Florida, and we also handle bankruptcies for tax cases in the local Middle District of Florida area. This is an issue that we deal with quite a bit. The questioner has provided some further facts which I will read out. Here's what they said: "I have an IRS lien attached to a house that is underwater, and the bank is taking it in a couple of months after foreclosure judgment. I don't have any valuable assets, so the IRS won't receive any compensation in a Chapter 7 bankruptcy. I am a hundred percent sure that the old taxes will be discharged in bankruptcy. Will the lien automatically be lifted upon discharge? If not, what do I have to do to get the lien lifted? And can the lien be applied to newly acquired property after bankruptcy, even though the debt owed to the IRS was discharged?" Well, that's a very fact-specific question, but I'll do my best to give you a good answer. Before we discuss the lien, let's talk about the rules for dischargeability and timing in bankruptcy. There are three basic rules: 1. The tax returns must have been due for at least three years, including extensions. Tax returns are usually due on April 15th, the year following the tax year in question. If there were extensions, the timing rule starts from the extension due date. 2. You must have filed the returns, even if filed late, for at least two years. There is a case called McCoy...