Eliminating Tax Liabilities Through Bankruptcy
Author: Gary P. Bluestein
| CPE Credit: |
2 hours for CPAs |
Bankruptcy is an incredibly powerful tool in dealing with both personal and business tax liabilities. By having the basic knowledge of what bankruptcy can do in relation to taxes, accountants can significantly help their clients and assist bankruptcy lawyers, who will often be far less competent than accountants in addressing tax issues. This course will explain the types of bankruptcies that are available and how to deal with the IRS and State taxing authorities in discharging tax liabilities through the bankruptcy process. The nuances and pitfalls in dealing with tax issues in bankruptcy will be discussed.
Publication Date: July 2025
Designed For
Accountants, tax attorneys and bankruptcy attorneys
Topics Covered
- Why Bankruptcy Is an Option to Solve Tax Problems
- Non-bankruptcy IRS Collection Solutions
- Types of Creditors Pre-petition Bankruptcy Claims
- Types of Bankruptcies
- Discharging Taxes
- Requirement for IRS to Have Secured Status
- Exemptions
- Impact of Assessment Lien
- BK Section 507 - Priority Tax Claims
- Trust Fund Tax
- Impact of Priority Taxes
Learning Objectives
- Identify what type of taxes can be discharged (eliminated) in bankruptcy
- Identify what the various timing requirements are to discharge taxes
- Identify the pros and cons of each type of bankruptcy
- Identify how an IRS assessment creates a "secret lien"
- Identify the main goal of a Chapter 7 bankruptcy
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Specialized Knowledge and Applications (2 hours)
Program Prerequisites
None
Advance Preparation
None
