Legal Question in Bankruptcy in Connecticut

When filing for bankruptcy, do you notify the IRS before or after you file your taxes to let them know you want to work out a payment plan with them? Thanks.

Asked on 4/06/17, 7:24 am

1 Answer from Attorneys

Joel M. Grafstein Grafstein & Arcaro, LLC

It is a timing issue. You certainly have the right to notify the IRS to negotiate a payment plan before filing; but it becomes an issue of how old are the taxes that you are seeking to pay. If more than 2 years old, and if the taxes were filed on time and have been assessed, then you may have dischargeable taxes, which can be discharged (eliminated) in a bankruptcy; not an issue with payroll taxes. If you file a bankruptcy the IRS is stayed (enjoined) from collection efforts while you are in a bankruptcy proceeding. You can start your negotiation while in the bankruptcy, but you will not be able to finalize the repayment until after the bankruptcy is completed with a discharge.

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Answered on 4/06/17, 11:07 am

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