Rhode Island Offers 'Aggressive' Yields After City Bankruptcy: Muni Credit Bloomberg
Rhode Island , whose poorest city filed for Chapter 9 bankruptcy protection Aug. 1, began a $169 million general-obligation bond sale yesterday with yields priced below an AA+ index of tax-exempt debt, one step higher.
The state was able to shake off Central Falls’s insolvency and offer individuals $6.75 million of AA rated bonds maturing in 2021 with a yield of 2.6 percent, according to pricing information from Janney Montgomery Scott LLC, a member of the deal’s syndicate. That’s 0.04 percentage point below an AA+ index of 10-year tax-exempt debt. About $11 million of the bonds maturing in 2031 priced at par with a 4 percent yield, or 0.15 point below an AA+ index of 20-year tax exempts.
Rhode Island isn’t a frequent issuer, which may have enabled it to offer lower yields than otherwise, said Michael Pietronico, chief executive officer of Miller Tabak Asset Management in New York , who manages $585 million of munis.
“Given the issues on the local basis, it seems like fairly aggressive pricing,” Pietronico said. “But the other side of the coin is that there just hasn’t been a lot of debt at the state level coming out of Rhode Island, so there could be some investors who have interest in diversifying.”
Tax Debt Relief - Bankruptcy Lawyer - Scott Dillon - Tully Rinckey Albany, NY
When individuals are delinquent on tax debts owed to the federal government, the IRS has many weapons in its arsenal to collect those taxes. The ...
Can the state try to collect a tax penalty debt if I completed Chapter 13 bankruptcy?
I filed a chapter 13 in July 2002 and completed my 5 years of repayments in July 2007 and the case was discharged. I immediately got a bill from the state saying I still owe $900 in interest and penalties from tax year 2000. Do I really owe this? Are all of my other debts wiped away now?
The filing of a Chapter 13 bankruptcy petition does not create a separate taxable estate for federal tax purposes. You file the same federal income tax return (Form 1040) that was filed prior to the bankruptcy petition. If you run into trouble paying your postpetition taxes, look into negotiating an agreement with the tax man.
You must pay local property taxes otherwise it will probably constitute a default on your home mortgage.
does bankruptcy cover income tax debt in canada?
No
Will bankruptcy wipe away tax debt.?
I have never filed for Bankruptcy, but the IRS is doing what they call a "substitute for return" for my late return. That means no expenses go against any of my earnings. That will put me at about 400k gross and it should be around 125k net. I run a business (just for the big difference in gross and net) and if they do this I will have to file bankruptcy or other. Any good advice?
Bankruptcy will not relieve you of a Federal Tax Debt
If the IRS is doing a substitute return you must be missing one or more years' returns. Get off your backside TODAY and file the correct returns!
1.) you cannot bankrupt out of any money owed the federal government... [including owed taxes]
2.) you cannot bankrupt out of owed child support...
3.) you cannot bankrupt out of money owed from fraudulent schemes...
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screw your creditors but settle with the IRS [they can harass you for life]
Does this help any?
You wouldn't have gotten to this point unless you just plain ignored the IRS for a good while
I have bad news, and I have good news! So, hold on for this ride, and I will give you the bad news, first.
The bad news, as I understand it...
Federal Income Tax Debt, if it has been less than three years after it was assessed, will not be discharged by bankruptcy.
Now, the good news, as I understand it...
1) Federal Income Tax Debt, if it has been more than three years after it was assessed, may be discharged by bankruptcy.
2) When a taxpayer just cannot pay his income taxes, because of financial hardship, etc, as evidenced by "Collection Information Statement" (Form 433-F), the IRS may put the taxpayer on "Uncollectable Status," which stalls IRS collection efforts, for a time. However, penalties and interest continue to accrue.
3) When Federal Income Tax debt ages over ten years after date of assessment, the tax debt falls off of the IRS computer. The IRS collection efforts, however, may become more aggressive as the ten year mark approaches!
4) When all income tax returns are filed up to date, the taxpayer may attempt to get relief under the Offer in Compromise program and settle for dimes on the dollar of his total tax debt.
5) As I understood the facts in your question, though, you have not yet filed for bankruptcy, anyway. I suggest, by all means, that you gather up your business expenses, report your accurate revenue, deduct itemized deductions, claim costs of capital gain assets sold, etc, on the late return you actually file. The return you file should override any substitute return filed by the IRS!
You may refer to my webpage for a case similar to the one you proposed, here. Go to http://www.phillipfostercpa.com/tax.html and, by all means, use the Free Initial Consultation Form, if you believe I can help you further!
Phil
Should bankruptcy law be changed to allow tax debt to be discharged?
Some tax debts over three years old ARE dischargeable.
I Cr 13;8a
Can you include Federal Income Tax due in bankruptcy? What about student loan debt?
No on both. Those are the two items that you are stuck with no matter what!
Does claiming bankruptcy include state and federal back tax debts?
I have never filed bankruptcy, but owe bookoo bucks on both, does filing chapter 13 include those debts?
No, some things are not included in bankruptcy. Examples are taxes owed and student loans. Talk to your lawyer. They should have told you all this if you are really filing.
I HAVE BEEN TOLD BY A VERY CREDIBLE BANKRUPTCY ATTORNEY THAT IRS DEBT IS BANKRUPTABLE .?
THE TAX DEBT MUST BE AT LEAST 3 YEARS OLD. DOES ANYONE HAVE AN EXPERIENCE WITH THE IRS AND BANKRUPTCY?? IRS TAX DEBT AND STUDENT LOANS ARE NOT THE SAME CASE BY IRS STANDARDS......(see previous answer to similar question 2 years ago.)
Income tax and other uncollected tax that became due and owing over three years prior to filing bankruptcy--this means 2004 and earlier right now--is discharged in a Chapter 7 bankruptcy provided the taxpayer filed the original return at least two years previously and the balance due was billed over 240 days ago. The discharge does not apply to exempt assets or assets abandoned by the bankruptcy trustee or if the underpaid tax was due to fraud or the taxpayer did not file a return. See Title 11, United States Code, Section 523.
Who ends up paying for the debt from People filing bankruptcy, the banks, credit card companies, tax payers?
it depends on whether its a corporation, business, individual, but banks, credit cards companies and tax payers all take a hit. More so depending on who the entity is in debt to. If a person owes a bank money and files for bankruptc, the bank takes the biggest hit for loaning that person money, tax payers will not get hit directly, but tax payers get hit indirectly as banks will have to increase rates, decrease loan amounts etc. There is no such thing as a free lunch as if your not paying for it, someone else is, and the ecomony will balance out because of it.
Can IRS back taxes be removed through bankruptcy?
I have tax debt, some of which is more than 7 years old, and I heard that they can be removed by declaring bankruptcy. Is this true? If so, can I also file an Offer In Compromise for the newer tax debt?
Ignore the posts that say taxes are not dischargable. The people don't know what they are talking about.
With some minor exceptions, income taxes where you filed the original return that became due and owing over three years prior to filing bankruptcy--right now this means 2004 and prior will be discharged except as to exempt or abandoned assets. These taxes have to have been billed for at least 240 days so a fresh bill from an audit that dragged on for ages would survive. If you file a Chapter 13, you can propose a plan to pay the tax and interest but not penalties.
In all cases, make sure you consult a lawyer. This is not a do it yourself project.
How do tax preparation techniques compare with bankruptcy techniques and what are the ethical implications?
Consider the following two scenarios.
1. Successful individual with six figure income and significant assets hires tax attorney/account to ensure every deduction and technique to reduce tax liability is explored and taken advantage.
2. Same situation as above but individual encounters serious financial downturn due to job loss or failed investments. Decides to exercise bankruptcy protection and hires attorney to ensure he is able to protect as many of his assets as possible and reduce financial liabilities as allowed by the legal process.
Both have acted legally. Is there an ethical difference between them? Is there an ethical duty to pay taxes as required by a democratically elected government? Is there an ethical duty to pay private debt? Is there a difference between the two?
Good answer; I ask because I recently heard an argument that people who use bankruptcy law to their advantage to resolve a financial problem are unethical or immoral.
Taxes are a legal requirement, regardless of moral or ethical boundaries. The law also provides a number of deductions to the personal income tax. If the taxpayer meets the criteria, then deduct as much as you can, it's the American way.
Bankruptcy is not required by law. It is however legal. One who practices bad business and intentionally leaves his debtors in the hole is morally and ethically wrong. But one who uses bankruptcy as it was intended is within their legal right.
What I fiind interesting is that people complain to the govt about taxes, but then demand the social programs and roads and schools.
I know nobody (Dem or Repub, rich or poor) who would be willing to pay debt that they don't have to. Bankruptcy allows them the latter option.
