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    troyboy6970's Avatar
    troyboy6970 Posts: 1, Reputation: 1
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    #1

    Mar 24, 2011, 07:22 PM
    If ira's are seized in bankruptcy do I have to pay penalty on my taxes?
    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's Avatar
    RickJ Posts: 7,762, Reputation: 864
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    #2

    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.
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