sagohoward[at]yahoo.com wrote:
- quote -

How was the business structured, corporate or sole prop?
If, corporate, and absent fraud, you may be held personally
liable only for the unpaid employee (withheld) portion of
the payroll taxes (the trust fund portion) and the interest
that accrues thereon after the trust fund recovery penalty
is assessed. If you operated as a sole prop, you are liable
for the the full amount of unpaid employer and employee
portions of the payroll taxes, and all penalties and
interest that accrue thereon.


- quote -

True

At this point, I am willing to sell my home to pay the TFT's,
- quote -

A good choice if you can do it.


- quote -

These questions are best left to a bankruptcy attorney
familiar with your total financial situation.


Is it likely to expect more
- quote -

A valid, approved payment plan would normally bar IRS from
taking additional enforcement actions unless you are in
default of any of the terms of the plan.

Is is difficult to
- quote -

Not at all. Can be accomplished in minutes. But release
doesn't erase the original filing in the public record
(future potential creditors will know.)

Is it
- quote -

No problem if the tax liens are paid in full at closing.


Are there
- quote -

If your home equity is insufficient to pay taxes in full,
you can sell the house and have it discharged from the tax
liens as long as you sell at arms length, for fair market
value, costs of sale are reasonable, and IRS receives all
funds to which it is entitled based on lien priority.

- quote -

You should consult with a competent tax professional
immediately, before you agree to the assessment and
collection of trust fund taxes and/or enter into a payment
agreement. You may be able to negotiate a pre-assessment
settlement of the trust fund liability and avoid any tax
liens and enforced collection actions.

I would like to ask some questions regarding Trust Fund Taxes (TFT),
since I have exhausted all
resources on the internet and library and cannot find a clear answer.
I owe TFT's from my failed business, but was able to make payment
arrangements with the local taxing authorities to repay taxes owed at
an affordable monthly amount. I am sending the delinquent returns
that
were not filed to the IRS so that they can give me the total amount of
TFT's owed to them including penalties and interest. I don't know how
much the total will be, but a good guess would be around $50k.

After reading lots of information on the IRS website and from various
other sources, I am confused as to how to proceed with making payment
arrangements with the IRS or how to proceed. I plan to file Chapter
7, but have read that even with a repayment plan the IRS
will still place a lien on my home or vehicle. I also read that with
an IRS lien on my credit report, it will be extremely difficult to re-
establish credit after I file for bankruptcy until the IRS is paid in
full. At this point, I am willing to sell my home to pay the TFT's,
but am unsure if I have enough equity to satisfy the debt.

In this scenario, what would be best? Is it practical to file Ch. 7
or should I consider a Ch. 13
if the taxes are extensive or if I can't afford to repay them in full
in 5 years or less on my own? Is
it possible to include TFT's in a Chapter 13 for full repayment of
interest, penalties and interest? Is it likely to expect more
forceful action from the IRS for repayment other than a tax lien even
if I voluntarily cooperate with a repayment plan? Is is difficult to
remove an IRS tax lien once the debt is repaid in full? Is it
possible to sell my home in the future with liens on it if I am aware
that the liens and mortgage holders must be repaid first? Are there
any other implications I did not mention with regard to TFT's and
enforcement by the IRS?

To summarize, my objective is to repay all TFT's owed with the least
amount of complications. Since my exhusband got me into this mess, I
am being the responsible party and stepping up to resolve it. Sorry
for so many complicated questions, but this is my last hope for
answers. Thanks in advance.