The following is an excerpt from:
"For Whom the Tax Tolls: Significant Events That Extend IRS Collection Rights"
Published in Tax Practice & Procedure - October/November 2004
By Michael S. Fried and Zachary S. Fried
» Download the full PDF Version of this tax article
» Go to the Table of Contents
Bankruptcy Solutions and Tolling Issues
As a result of the August 8, 2007, collection statute expiration date for the nondischargeable (infinitely 'priority') trust fund taxes (and most of his other tax liabilities) it was necessary to devise a strategy enabling Dr. Delinquent to apply his limited resources to payment of the trust fund tax, while substantially reducing or eliminating his other tax liabilities. Accordingly, we turned our attention to the possibility of discharging the nontrust fund tax liabilities in a Chapter 7 or 13 bankruptcy, or a combination of the two. This strategy required that we examine the impact of the taxpayer's various activities on the running of the applicable bankruptcy discharge time periods' three-year look back period, the two-year filing period and the 240-day assessment period.
» Download the full PDF Version of this tax article
- Introduction
- Statute of Limitation on Collection
- Discharge of Taxes in Bankruptcy
- Hypothetical Client
- Collection Statute Expiration
- Bankruptcy Solutions and Tolling Issues
- 1998, 1999 and 2000 Tax Liabilities
- 1997 Tax Liability
- Two Hundred and Forty Day Assessment Period
- Application of Three-Year Look Back Rule and Two-Year Filing Rule to 1997 Tax
- LTR 200404049
- Application to 1997 Tax Liability
- 1987 to 1996 Tax Liabilities
- Conclusion
- Endnotes & Sources