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community discharge and IRS taxes
Tax debt is always joint and several. When one spouse files bankruptcy but not the other, the IRS creates new non-master file transcripts to keep track of each spouse's liability: the filing spouse may be discharged while the non-filing spouse retains a liability.I haven't reviewed Sec. 524 before opining here, so this is a bit of a shot in the dark, but if both spouses owe the same liability, even if they appear on different transcripts, the liabilities are still joint and several. The "bifurcation" Mark refers to does not affect the application of Sec. 524.- John D. Faucher
On Saturday, July 9, 2016 2:23 AM, "'Mark J. Markus' bklawr@yahoo.com [cdcbaa]" wrote:
On 7/8/2016 5:19 PM, Patrick Green pat@fitzgreenlaw.com [cdcbaa] wrote:
Mark: I do not understand what you mean when you say the IRS "community" issue and thus no protection via the community discharge under 524.
I really have two questions: 1. What does it mean that the IRS has bifurcated the debt?
Apparently the IRS can allocate the tax debt between the spouses so each has individual (as opposed to joint) liability. Thus it would be considered separate property debt (allegedly) and they would still be able to collect against W.
2. Why would the community discharge not protect the non-filing spouse?
a discharge in bankruptcy because she already received a discharge under Ch. 7 in the past 8 years.
If you have any questions or concerns, please contact me. Pat w 1010 E. Union St. Suite 206 Pasadena, CA 91106 Tel: Sent: Friday, July 08, 2016 4:32 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] community discharge and IRS taxes Here's a brain teaser for you all:
Facts:
Wife (W) filed Ch. 7 bankruptcy about 5 years ago and got a discharge.
Since that time (and prior to) H&W incurred income tax debt to the IRS and other non-tax debts. Let's just say for the sake of argument, that the tax debt is dischargeable at this time.
If Husband (H) now files a Chapter 7 case by himself, will the W be protected from collection by any or all of the creditors?
My concern is that the IRS has now bifurcated the tax liability so it's no longer a "community" issue and thus no protection via the community discharge under 524. As to the other debts, I'm not sure how the community discharge works when the non-filing spouse is not eligible for the discharge under that Chapter (or if that makes any difference).
*************************
Mark J. Markus
Law Office of Mark J. Markus
Mailing Address Only:
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)332-1180 (fax)
web: http://www.bklaw.com/
Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
This Firm is a Qualified Federal Debt Relief Agency
________________________________________________
NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication. --
*************************
Mark J. Markus
Law Office of Mark J. Markus
Mailing Address Only:
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)332-1180 (fax)
web: http://www.bklaw.com/
Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
This Firm is a Qualified Federal Debt Relief Agency
________________________________________________
NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication. #yiv0545387527
The post was migrated from Yahoo.
On 7/8/2016 5:19 PM, Patrick Green pat@fitzgreenlaw.com [cdcbaa] wrote:
>
>
> Mark:
>
> I do not understand what you mean when you say the IRS “that the
> IRS has now bifurcated the tax liability so it's no longer a
> "community" issue and thus no protection via the community
> discharge under 524.”
>
>
> I really have two questions:
>
> 1. What does it mean that the IRS has bifurcated the debt?
>
*Apparently the IRS can allocate the tax debt between the spouses so
each has individual (as opposed to joint) liability. Thus it would
be considered separate property debt (allegedly) and they would
still be able to collect against W.*
>
> 2.Why would the community discharge not protect the non-filing spouse?
>
* For the reasons I stated--that the non-filing spouse is
not entitled to a discharge in bankruptcy because she already
received a discharge under Ch. 7 in the past 8 years.*
>
> If you have any questions or concerns, please contact me.
>
> Pat
>
> Patrick T. Green
>
> Attorney at Law
>
> Fitzgerald & Green, Attorneys at Law
>
> 1010 E. Union St. Suite 206
>
> Pasadena, CA 91106
>
> Tel: (626) 449-8433
>
> Fax: (626) 449-0565
>
> pat@fitzgreenlaw.com
>
> *From:*cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com]
> *Sent:* Friday, July 08, 2016 4:32 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* [cdcbaa] community discharge and IRS taxes
>
> Here's a brain teaser for you all:
>
> _Facts_:
>
> Wife (W) filed Ch. 7 bankruptcy about 5 years ago and got a discharge.
>
> Since that time (and prior to) H&W incurred income tax debt to the
> IRS and other non-tax debts. Let's just say for the sake of
> argument, that the tax debt is dischargeable at this time.
>
> If Husband (H) now files a Chapter 7 case by himself, will the W
> be protected from collection by any or all of the creditors?
>
> My concern is that the IRS has now bifurcated the tax liability so
> it's no longer a "community" issue and thus no protection via the
> community discharge under 524. As to the other debts, I'm not
> sure how the community discharge works when the non-filing spouse
> is not eligible for the discharge under that Chapter (or if that
> makes any difference).
>
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
> *_Mailing Address Only:_*
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)332-1180 (fax)
> web: http://www.bklaw.com/
> Certified Bankruptcy Law Specialist--The State Bar of California
> Board of Legal Specialization
> This Firm is a Qualified Federal Debt Relief Agency
> ________________________________________________
> NOTICE: This Electronic Message contains information from the law
> office of Mark J. Markus that may be privileged. The information
> is intended for the use of the addressee only. If you are not the
> addressee, note that any disclosure, copy, distribution or use of
> the contents of this message is prohibited.
> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements
> imposed by the IRS, we inform you that any U.S. tax advice
> contained in this communication (or in any attachment) is not
> intended or written to be used, and cannot be used, for the
> purpose of (i) avoiding penalties under the Internal Revenue Code
> or (ii) promoting, marketing or recommending to another party any
> transaction or matter addressed in this communication.
>
>
>
>
*************************
Mark J. Markus
Law Office of Mark J. Markus
_*Mailing Address Only:*_
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)332-1180 (fax)
web: http://www.bklaw.com/
Certified Bankruptcy Law Specialist--The State Bar of California
Board of Legal Specialization
This Firm is a Qualified Federal Debt Relief Agency
________________________________________________
NOTICE: This Electronic Message contains information from the law
office of Mark J. Markus that may be privileged. The information is
intended for the use of the addressee only. If you are not the
addressee, note that any disclosure, copy, distribution or use of
the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements
imposed by the IRS, we inform you that any U.S. tax advice contained
in this communication (or in any attachment) is not intended or
written to be used, and cannot be used, for the purpose of (i)
avoiding penalties under the Internal Revenue Code or (ii)
promoting, marketing or recommending to another party any
transaction or matter addressed in this communication.
The post was migrated from Yahoo.
Here's a brain teaser for you all:
_Facts_:
Wife (W) filed Ch. 7 bankruptcy about 5 years ago and got a discharge.
Since that time (and prior to) H&W incurred income tax debt to the
IRS and other non-tax debts. Let's just say for the sake of
argument, that the tax debt is dischargeable at this time.
If Husband (H) now files a Chapter 7 case by himself, will the W be
protected from collection by any or all of the creditors?
My concern is that the IRS has now bifurcated the tax liability so
it's no longer a "community" issue and thus no protection via the
community discharge under 524. As to the other debts, I'm not sure
how the community discharge works when the non-filing spouse is not
eligible for the discharge under that Chapter (or if that makes any
difference).
*************************
Mark J. Markus
Law Office of Mark J. Markus
_*Mailing Address Only:*_
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)332-1180 (fax)
web: http://www.bklaw.com/
Certified Bankruptcy Law Specialist--The State Bar of California
Board of Legal Specialization
This Firm is a Qualified Federal Debt Relief Agency
________________________________________________
NOTICE: This Electronic Message contains information from the law
office of Mark J. Markus that may be privileged. The information is
intended for the use of the addressee only. If you are not the
addressee, note that any disclosure, copy, distribution or use of
the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements
imposed by the IRS, we inform you that any U.S. tax advice contained
in this communication (or in any attachment) is not intended or
written to be used, and cannot be used, for the purpose of (i)
avoiding penalties under the Internal Revenue Code or (ii)
promoting, marketing or recommending to another party any
transaction or matter addressed in this communication.
The post was migrated from Yahoo.