Bankruptcies are expected to make a severe rise with pandemic conditions leading to recent business closings and job loss. A recent Harvard Business report stated Chapter 11 business bankruptcies climbed 35% year-over-year and by 194% for larger corporations.

As you know, most income tax debt survives the bankruptcy of your client. Determining which years your client has tax debt can make a critical difference of when to file the bankruptcy. Filing too soon could lead to the client being liable for additional debt that otherwise could have been written off.

We can evaluate your client’s bankruptcy discharge options as they relate to income taxes and assist you in getting IRS Transcripts for the trustee to generate a report that summarizes their tax debt. We can assist your client with filing back tax returns needed prior to filing bankruptcy. Additionally, we can evaluate any tolling events which extend your clients tax liabilities and determining the 3-Year, 2-Year and 240-Day Rule.

Before you file your client’s bankruptcy, let us evaluate the statutes of limitation for Assessment (ASED), Refund (RSED), and Collection (CSED) to avoid any unnecessary financial burdens down the road.