Tax Litigation in Bankruptcy Court

Tax Litigation in Bankruptcy Court

Some individual and business taxpayers think that tax bankruptcy is the best way to get rid of their tax liabilities without paying a dime. It is true that certain tax debts can be discharged by filing a Chapter 7 bankruptcy. Taxpayers who consider this option should know that if you have significant assets, those assets can be turned over to the IRS. In a bankruptcy court, a judge will decide whether or not your tax debts are owed. It will also determine whether or not you will pay your tax debts up front.

US Bankruptcy Court

The US Bankruptcy Court has the power to decide all disputes between taxpayers and the IRS. A judge will decide each case. The Bankruptcy Court is similar to a tax court because it allows taxpayers to challenge a tax liability before making payment.

The Bankruptcy Court will determine the following:

  • The validity and the tax debt claimed by the IRS.
  • The IRS’s lien rights
  • The rights of a taxpayer to discharge a tax liability

The remedies for those penalties will vary depending on the Bankruptcy petition being filed. At Enterprise Consultants Group, we represent our clients, regardless of the complexities of the federal tax matters in courts. If you want to have a confidential consultation with our tax attorneys to know the possible resolutions to your tax litigation in Bankruptcy Court, you shouldn’t waste time give us a call today at 800-950-2237

CA State Board of Equalization

If the SBE assumed that you owe $500,000 in taxes, you could contest. You can explain that its determination was incorrect. Typically, the only way for you to get a judge to hear your case is to pay the said amount, file a claim for refund and file a suit in the California State Superior Court to ask the judge to return your money.

But, what if you do not have $500,000? What you can do here is to file bankruptcy. The SBE would file a proof of claim. When you hire our tax litigation attorneys, we could file an objection to that request. The Bankruptcy Court judge would decide if you did owe those taxes.

In this case, you will need a tax litigation attorney to help you get through a litigating tax dispute. If you think that a tax bankruptcy is useful to solve your tax problems, please consult with our tax litigation attorneys at Enterprise Consultants Group for a confidential consultation with no obligation: 800-950-2237

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