Basic Bankruptcy Treatment of Income Tax for Individuals
This item attempts to clarify whether income taxes can be dismissed in bankruptcy and discusses certain aspects of bankruptcy and other options that CPAs need to be aware of in order to best represent their individual clients
Published on July 01, 2011
Dismissal of Tax-Driven Bankruptcy Plan Affirmed
The Seventh Circuit affirmed a bankruptcy court’s refusal to confirm a bankruptcy plan and its dismissal of the bankruptcy proceeding because the principal purpose was to avoid taxes. The court said the filing was...
Published on August 01, 2010
Inherited IRA Is Included in Bankruptcy Estate
The Supreme Court held that funds held in an inherited IRA are not retirement funds that are exempt from a bankruptcy estate
Published on August 01, 2014
QSub Status Is Not Property of Bankruptcy Estate
An S corporation’s revocation of its S corporation status, which caused its QSub subsidiary to lose its status as a QSub, was not a post-bankruptcy-petition transfer of property of the QSub’s bankruptcy estate
Published on August 01, 2013
Taxes From Postpetition Farm Sale Are Not Dischargeable
The Supreme Court ruled that taxes on gain from the sale of a farm after its owner had filed a Chapter 12 bankruptcy petition were not taxes incurred by the bankruptcy estate
Published on July 01, 2012
Bankruptcy and the Trust Fund Recovery Penalty
When a corporation fails to remit the withheld taxes to the government, the IRS looks through the corporation to the individual or individuals who are responsible for the failure.
Published on April 01, 2013
The Statute of Limitations
How one taxpayer carefully reviewed the Statute and saved over $1.5 million.
Published on July 15, 2010
Taxpayers Not Insolvent for Purposes of Sec. 108 Exclusion
The Tax Court held that a married couple had failed to prove the FMV of their two homes and the husband’s pension and thus could not prove they were insolvent.
Published on October 01, 2012
On the Bookshelf
Information on books of interest to tax practitioners.
Published on March 01, 2008
Deductibility of Bankruptcy Costs and the Origin of the Claim
Costs incurred in a bankruptcy filing can be categorized as either personal or business related. A taxpayer cannot deduct those categorized as personal expenses but can deduct those categorized as business expenses
Published on August 01, 2009