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Student Loan Debt Consolidation

tax relief help, tax debt relief, tax relief, student loan consolidation

As of March 2019, U.S. student loan debt amounted to $1.6 trillion in federal and private student loan debt.

On July 11, 2019 the President of the American Federation of Teachers, AFL-CIO filed a lawsuit against the U.S. Department of Education (ED) for gross mismanagement of the Public Service Loan Forgiveness (PSLF) and Temporary Expanded Public Service Loan Forgiveness (EPSLF) programs.

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Should you get a home equity loan to pay off back taxes?

IRS tax lien, bankruptcy and taxes, home equity loan back taxes

In this article, we’ll explain why getting a home equity to pay back taxes can be a great alternative to an IRS streamlined payment plan.

Will you be able to get a loan?

If there is a federal tax lien on your home, you may have trouble getting a loan.

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Bankruptcy & Taxes: Discharging Tax Debt Under Chapter 7

IRS tax lien, bankruptcy and taxes, home equity loan back taxes

Discharging Tax Debt Under Chapter 7

A common misconception is that federal taxes cannot be discharged through bankruptcy. A Chapter 7 filing can be a very powerful tool in obtaining relief for past due taxes.

What is Chapter 7 Bankruptcy?

A petition filed under Chapter 7 of the Bankruptcy Code is used to discharge debt through liquidation of assets. However, exempt and excluded assets are retained by the debtor. Examples of exempt assets include your homestead up to 1 acre, personal property ($30-60K), life insurance, pensions for state and local employees, tools of trade, earned but unpaid wages, and unpaid commissions up to 75%.

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How to get Currently Not Collectible Status from the IRS

IRS currently not collectible

Taxpayers who have no ability to make monthly payments towards their tax debt can request that the IRS place their account in currently not collectible (CNC) status.

While a taxpayer’s account is placed as currently not collectible, the IRS will not levy or attempt to collect the debt. Taxpayers who are are temporarily out of work are good candidates for currently not collectible.

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Letter 6152 Passport Notice For Seriously Delinquent Tax Debt

IRS Penalties, innocent spouse relief, seriously delinquent tax debt

In a recent tax forum, the IRS stated that they are drafting a new Letter 6152 that will be sent to taxpayers who haven’t settled their tax debt. The letter will warn such taxpayers that their passport will be revoked.

The authority to revoke passports for “seriously delinquent tax debt” is provided under Internal Revenue Code § 7345.

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