My husband and I have ended up, up a creek without a paddle... so to speak. We had some problems with the IRS and after 7 years got an OFFER IN COMPROMISE approved by the IRS and paid the agreed amount. I was not aware there was a codocile to the offer that our taxes had to be paid on time for 5 years or the offer was nullified. He ended up with cancer, almost died, and has had 5 surgeries and still needs one more. I cannot go through another 7 years of fighting these people. What I need to know is what the rules are about filing bankruptcy against the IRS.

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Originally Posted by bizebodi

My husband and I have ended up, up a creek without a paddle... so to speak. We had some problems with the IRS and after 7 years got an OFFER IN COMPROMISE approved by the IRS and paid the agreed amount. I was not aware there was a codocile to the offer that our taxes had to be paid on time for 5 years or the offer was nullified. He ended up with cancer, almost died, and has had 5 surgeries and still needs one more. I cannot go through another 7 years of fighting these people. What I need to know is what the rules are about filing bankruptcy against the IRS.

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You don't file bankruptcy AGAINST anyone. You file bankruptcy (to put it simply) to discharge your debts and get a fresh start.

IRS debt is NOT dischargeable in bankruptcy so even if you file and everything else is erased the debt will live on.

If I understand you correctly you owed IRS money, you settled for a smaller amount than you owed with an agreement that taxes would be paid on time for 5 years, you paid the smaller amount but did not pay taxes on time at some point or another during the next 5 years. Are these personal taxes or business taxes?

You refer to IRS taxes in Texas - I'm assuming you mean IRS and live in Texas and aren't referring to Texas State taxes (if there are any).

I've never seen a codicil (which is an add on) to an IRS agreement - was the "5 years on time" part of the original agreement or was it, in fact, an add on AFTER you signed the agreement (and then had to sign the add on)?

Have you discussed this with an Attorney who specializes in IRS/tax problems?

You can not file bankruptcy on IRS debts, You may want to hire a attoreny that specialises in this. They may be able to show that you had all of these issues and work something out.

Also I guess what is the issue of paying your taxes and filing on time.
Are you self employed, do you not have enough taxes held out of your check?

How late paying your taxes are you, ( since April was a long time ago when most are due, unless you file for an extension)