State Income Tax Bankruptcy
A Kentucky income tax bankruptcy is essentially no different from a bankruptcy with the IRS.
This is how to get the IRS account transcript you need in minutes.
Discharging Kentucky and Indiana income taxes in bankruptcy is no different from discharging IRS federal income taxes. Accountant and lawyers used to need to file a form 8821 or 2848 in order to get them but now this can be done online and we are going to show you how to do it step by step. The account transcripts are necessary to determining if you have waited long enough to file bankruptcy and wipe our your income tax liability. Miss it by one day and you will not discharge the income taxes. The IRS will not tell you if you have waited long enough and even if a staff employee did they are not liable if they give you bad advise.
Often people will enter into a payment arrangement until the taxes have been aged sufficiently to file bankruptcy and wipe out the debt. You will need the account transcripts and the Tax Transcript Codes whether you use an attorney or the online tax discharge determinator program. We always suggest that you double check by using the taxdischargedeterminator.com program. You also need the last two IRS returns to file with the court if you need to file bankruptcy. The account transcript will tell you the history of your account and if there has been an assessment, offer in compromise, late filing extension or late receipt of a return which may extend the period of time you have to wait. The account transcript record is essential for determining if you have waited long enough to discharge your income taxes. It is not your tax return. Here are the steps.
- The IRS sometimes will move a page but in 2014 this is where the page was and you should be able to cut and paste this in. http://www.irs.gov/Individuals/Get-Transcript. If the IRS moves this page you need to you can also Go to irs.gov and then
- Do search for “Account Transcript
- Click on “Get Transcripts”
- Click “Create Account” (unless you already have one)
- Enter name, email address.
- Check email and get “Confirmation Code”
- Enter code on the web page
- Enter SSN, birthdate, filing status, country, address.
- Select which transcripts.
The alternative of calling the Priority Hotline still remains valid at 1-800-829-1040. A professional can get the transcripts faxed to him/her from the Hotline, typically within a day or two. They will also mail hard-copies if requested (helpful if your fax machine does not print clearly). The kinds of transcripts available this way include Transcript of Return, Account Transcripts, Record of Account, Wage and Income transcripts, and a Verification of Nonfiling Letter. Oof course this presumes that your Kentucky or Indiana return was filed and received at the same time as the Federal return. A Kentucky income tax bankruptcy is essentially not different from the bankruptcy with the IRS.