Tax Due Diligence Process
Step one in this due diligence process is ordering an IRS tax transcript. Such a transcript will provide us with the following information:
- The amount due;
- When and if the returns were actually filed;
- If the returns were unfiled, whether the IRS made a substitute return; and
- The assessed penalties and interest owed for each year.
Once we have gathered all this information, we will able to establish whether or not filing for bankruptcy makes sense for you. For example, maybe an offer to compromise or installment agreement is a better option.
In order to establish what NY income taxes may be dischargeable in a Chapter 7 bankruptcy case, your tax attorney will need to order an IRS tax transcript for the years you are attempting to discharge.
If requested, we can order even more detailed reports that provide the sources of income for each year.
Contact our experienced tax and bankruptcy attorneys today for assistance (212) 843-0050