I would like to ask some questions regarding Trust Fund Taxes (TFT), since I have exhausted all resources on the internet and library and cannot find a clear answer. I owe TFT's from my failed business, but was able to make payment arrangements with the local taxing authorities to repay taxes owed at an affordable monthly amount. I am sending the delinquent returns that were not filed to the IRS so that they can give me the total amount of TFT's owed to them including penalties and interest. I don't know how much the total will be, but a good guess would be around $50k.
After reading lots of information on the IRS website and from various
other sources, I am confused as to how to proceed with making payment
arrangements with the IRS or how to proceed. I plan to file Chapter
7, but have read that even with a repayment plan the IRS
will still place a lien on my home or vehicle. I also read that with
an IRS lien on my credit report, it will be extremely difficult to re-
establish credit after I file for bankruptcy until the IRS is paid in
full. At this point, I am willing to sell my home to pay the TFT's,
but am unsure if I have enough equity to satisfy the debt.
In this scenario, what would be best? Is it practical to file Ch. 7
or should I consider a Ch. 13
if the taxes are extensive or if I can't afford to repay them in full
in 5 years or less on my own? Is
it possible to include TFT's in a Chapter 13 for full repayment of
interest, penalties and interest? Is it likely to expect more
forceful action from the IRS for repayment other than a tax lien even
if I voluntarily cooperate with a repayment plan? Is is difficult to
remove an IRS tax lien once the debt is repaid in full? Is it
possible to sell my home in the future with liens on it if I am aware
that the liens and mortgage holders must be repaid first? Are there
any other implications I did not mention with regard to TFT's and
enforcement by the IRS?
To summarize, my objective is to repay all TFT's owed with the least
amount of complications. Since my exhusband got me into this mess, I
am being the responsible party and stepping up to resolve it. Sorry
for so many complicated questions, but this is my last hope for
answers. Thanks in advance.
- posted 12 years ago