Tax problem attorney Darrin Mish of Tampa has recently begun publication of his “IRS Problem Solver blog.” As you might imagine bankruptcy filings are often driven by tax problems. If you have tax problems in the form of unpaid taxes, huge penalties and imminent collection, it might make sense to speak to both a bankruptcy lawyer and a tax problem lawyer like Darren to review all of your options.
Darrin recently wrote about a case where he used the “bankruptcy card” in his negotiations with the IRS to negotiate favorable terms in an Offer in Compromise. The case involved a debtor who had not filed tax returns for ten years and owed an estimated $145,000. Darrin was able to negotiate a Offer in Compromise in the amount of $24,000 with the IRS Appeals Division by pointing out that the Internal Revenue Manual says that if a taxpayer threatens bankruptcy, then the IRS must calculate what the IRS would likely receive after the bankruptcy was over.
Obviously, not every $145,000 tax liability will settle for 17 cents on the dollar, but this is an example of how even the threat of bankruptcy can make a difference.