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View Full Version : If ira's are seized in bankruptcy do I have to pay penalty on my taxes?


troyboy6970
Mar 24, 2011, 07:22 PM
I recently went through a chapter 7 bankruptcy in whick trustee would not allow discharge unless I turned over 20,0 worth of ira's. Now my cpa says I have to pay penalities and taxes on these. Is that right?

RickJ
Mar 25, 2011, 04:46 AM
Yes. You cannot discharge debts to the IRS with a bankruptcy.

You should, though, try to negotiate with them on those penalties and taxes... try to settle for a lower amount.