While it feels like we are stuck in a never-ending 2020, it’s the middle of February 2021 and tax returns are due in two months. It’s possible some of you have already filed your returns but most are still getting paperwork together and will file closer to April 15th or go on extension. Either way, I am going to spend the next few blog posts discussing taxes and how they relate to debt, bankruptcy, and foreclosure.
Disclaimer: I am not an accountant and am not giving any advice as to how you should prepare your tax returns. Always consult with an accountant if you have any questions about the preparation and filing of tax returns.
Some of the upcoming topics will include:
- When cancellation of debt is NOT taxable;
- Can you discharge taxes in a bankruptcy (SPOILER ALERT: yes, you can)
- Tax refunds and bankruptcy; and
- What happens when you file taxes jointly but only one spouse files bankruptcy
Bankruptcy is interesting (my wife may disagree) in that it requires basic knowledge of other areas including accounting, real estate law, family law, and estate planning. All of these subjects come into play regularly in bankruptcy filings.
Dealing with the IRS and New York State Department of Taxation and Financing can be frustrating. Even after sitting on hold for hours, the representatives may not be able to answer your questions or work with you to address tax debt. There are ways to address tax debt through bankruptcy and outside of bankruptcy. Contact Zimmelman Law to find out how.
Stay tuned for more as we make our way through tax season!
Zimmelman Law PLLC
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