Q: If I have tax issues, can I discharge the tax debt in bankruptcy?
A: Generally, tax obligations are not dischargeable in bankruptcy. However, the use of the bankruptcy code can be beneficial in some tax situations. The automatic stay can release wage levies and the bankruptcy can also be utilized to make a payment plan that the IRS must accept.
Q: If I have an unpaid tax liability, what can I do?
A: For a business or individual to have an unpaid tax liability is within normal operation. Many people and businesses have tax debts which can carry for quite some time. The best thing to do in the situation is to face the issue head on rather than avoiding it. There is no one solution that trumps or is applicable to all situations. Sometimes a simple payment plan is used, and at other times complex legal devices must be used to make sure the taxpayer does not suffer hardship.
Q: I own a business containing real estate, but would like to retire. What are my options regarding exiting my business?
A: Real estate tends to present some challenges when selling a business. A lot of times, buyers are interested in the business, but not the real estate and vice versa. Addressing the issues early on with your advisor is one key to advancing to your goals of retiring or otherwise moving on.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors