Owing money to the IRS isn’t so bad.

Say what now?

Yep, that’s right. It’s not such a terrible thing.

Well … as long as you’re broke, that is.

Because if you have significant income or assets, the IRS is going to do everything they can to squeeze every last dime out of you. (Unless you get help. If you need help, you’ve come to the right DuPage tax advisor.)

But if you just don’t have much, they can determine pretty quickly that they won’t be able to get much out of you. This is especially true if your income falls below a magical set of numbers that the IRS creates every year called the Allowable Living Expenses (ALE).

After all, you can’t squeeze water from a rock.

If you can demonstrate to the IRS that you have no significant assets and that your income is below those ALEs, you can be placed into what they call Currently Not Collectible or CNC status.

https://thinkingoutsidetheboxlaw.com

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630-225-9840

The podcast, originating from a law firm, focuses on Chapter 11 bankruptcy as a strategic option for businesses facing significant financial challenges, particularly in the DuPage area. It explains that this type of bankruptcy is not an admission of defeat but rather a path to reorganize debts, renegotiate contracts, and establish a sustainable financial foundation for businesses with a viable future. The text clarifies common questions about the process, such as its impact on business continuity and debt restructuring, emphasizing that businesses generally retain control of daily operations. Ultimately, the source positions Chapter 11 as a "fresh start" for businesses to emerge stronger, especially for those struggling with tax debt.

https://thinkingoutsidetheboxlaw.com

email@otblaw.com

630-225-9840

Bankruptcy tends to get a bit of a bad rap. You probably picture financial ruin and losing everything. But that’s not always what it means, especially when you’re facing a mountain of tax debt.

While you might think your only choice is a rigid payment plan or a long-shot Offer in Compromise, there’s another powerful, court-backed tool that could be an option for your situation: Chapter 13 bankruptcy (aka: the wage earner’s plan).

With a Chapter 13 filing, you can reorganize your finances and get a fresh start, often while preventing foreclosure of your DuPage home or the liquidation of your assets. And yes, it can be a game-changer for your tax debt as well, and that’s what I want to focus on today.

https://thinkingoutsidetheboxlaw.com

email@otblaw.com

630-225-9840