My parents filed for bankruptcy a few years back and had it discharged in 2004. They just received a notice today(in 2007) that they are being audited for 2005. During their bankruptcy, the IRS repeatedly sent them letter despite the fact that they knew they were not allowed to. I know that was harassment, but is it also harassment that my parents are being audited for the year immediately following their discharge? My parents have the proper files to support their taxes, but what they are worried about is that the IRS is going to continue to badger them and go after them every time they get some money saved up. Is there anything they can do?
2007-09-30 15:16:06 · 2 answers · asked by LH 1 in Politics & Government ➔ Law & Ethics
You guys are missing the point. I wasn't asking if the back taxes were being wiped out. But the fact that they are just now in 2007 being audited for taxes for the year right after their discharge seems like harassment. There is nothing suspicious about their taxes because they have been honest. They have paid their taxes like they were supposed to. They already raped my parents once before because they could not afford a lawyer to fight them. To me, it seems like they trying to do the exact same thing all over again
2007-10-01 04:52:40 · update #1
Bankruptcy does not wipe out back taxes and does not effect the IRS, your parents need to contact one of these places that helps you negotiate to settle your tax bill
2007-09-30 15:21:13 · answer #1 · answered by BILL 7 · 0⤊ 0⤋
Bankruptcy can wipe out income taxes that are more than 3 years old. Bankruptcy does not wipe out new years' income taxes and withholding taxes or tax liabilities that arise from fraud.
2007-09-30 18:36:45 · answer #2 · answered by mattapan26 7 · 0⤊ 1⤋