Even though filing a bankruptcy can stop all collection action, it doesn\u2019t prevent the IRS from doing an audit.\u00a0 An audit also extends the time that you can file a bankruptcy.\u00a0 A bankruptcy can only be filed on a tax year 240 days from the time the audit was completed and any additional taxes assessed.<\/p>\n
If you are going to file a bankruptcy to discharge your IRS taxes, then an audit is really only going to cause a temporary delay.\u00a0 If you owe more taxes, the silver lining in an audit is that you will also get those taxes settled.\u00a0 The only issue is what to do for the additional 240 days before filing a bankruptcy.\u00a0 In most cases, we put our clients in a non collectible status or an installment arrangement.\u00a0 If you qualify for a non collectible you do not have to make any payments to the IRS.\u00a0 If you are put on a monthly payment plan, most clients make an average of 4 or 5 payments before they can file their bankruptcy.<\/p>\n
Scott Allen E. A.<\/a><\/p>\n