{"id":1255,"date":"2024-11-24T12:07:00","date_gmt":"2024-11-24T20:07:00","guid":{"rendered":"https:\/\/huddlestontaxcpas.com\/?page_id=1255"},"modified":"2024-11-26T21:54:29","modified_gmt":"2024-11-27T05:54:29","slug":"filing-bankruptcy","status":"publish","type":"page","link":"https:\/\/huddlestontaxcpas.com\/oic\/filing-bankruptcy\/","title":{"rendered":"Rejection &amp; Filing Bankruptcy"},"content":{"rendered":"\n<p>While an Offer in Compromise (OIC) can be a powerful tool for taxpayers struggling with significant tax debt, it&#8217;s not the only solution available. If your OIC is rejected or you don&#8217;t qualify, consider these alternative options:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. <strong>Bankruptcy<\/strong><\/h3>\n\n\n\n<p>Bankruptcy can provide relief from certain tax debts. Chapter 7 and Chapter 13 bankruptcy can discharge tax liabilities under specific conditions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Timely Filing:<\/strong> Your tax returns must be filed on time, or within the extended filing deadline.<\/li>\n\n\n\n<li><strong>Non-Fraudulent Returns:<\/strong> Your tax returns must be accurate and truthful.<\/li>\n\n\n\n<li><strong>Assessment Period:<\/strong> The IRS must have assessed the tax liability within a certain timeframe.<\/li>\n\n\n\n<li><strong>No Intentional Tax Evasion:<\/strong> You must not have intentionally avoided paying taxes.<\/li>\n<\/ul>\n\n\n\n<p><strong>Note:<\/strong> Bankruptcy can have significant long-term financial consequences, such as damage to your credit score. It&#8217;s essential to consult with a bankruptcy attorney to weigh the pros and cons.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. <strong>Currently Not Collectible (CNC) Status<\/strong><\/h3>\n\n\n\n<p>If you can&#8217;t afford to pay your taxes, you may qualify for CNC status. The IRS will halt collection activity while you&#8217;re in CNC status. However, this is not a permanent solution. The IRS can resume collection efforts once your financial situation improves.<\/p>\n\n\n\n<p><strong>To qualify for CNC status, you must demonstrate that you cannot afford to pay your taxes.<\/strong> This typically involves providing documentation of your income, expenses, and assets.<\/p>\n\n\n\n<p><strong>Remember:<\/strong> While these options can provide relief, they should be considered carefully. It&#8217;s advisable to consult with a tax professional to determine the best course of action for your specific situation.<\/p>\n\n\n\n<p>Photo by <a href=\"https:\/\/unsplash.com\/@melindagimpel?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\">Melinda Gimpel<\/a> on <a href=\"https:\/\/unsplash.com\/@melindagimpel\" target=\"_blank\" rel=\"noreferrer noopener\">Unsplash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While an Offer in Compromise (OIC) can be a powerful tool for taxpayers struggling with significant tax debt, it&#8217;s not the only solution available. If your OIC is rejected or you don&#8217;t qualify, consider these alternative options: 1. Bankruptcy Bankruptcy can provide relief from certain tax debts. Chapter 7 and Chapter 13 bankruptcy can discharge [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7212,"parent":3403,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"content-sidebar","footnotes":""},"class_list":{"0":"post-1255","1":"page","2":"type-page","3":"status-publish","4":"has-post-thumbnail","6":"entry"},"_links":{"self":[{"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/pages\/1255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/comments?post=1255"}],"version-history":[{"count":6,"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/pages\/1255\/revisions"}],"predecessor-version":[{"id":7213,"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/pages\/1255\/revisions\/7213"}],"up":[{"embeddable":true,"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/pages\/3403"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/media\/7212"}],"wp:attachment":[{"href":"https:\/\/huddlestontaxcpas.com\/wp-json\/wp\/v2\/media?parent=1255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}