Our bankruptcy lawyers office said it does but I'm reading in places online that it doesnt. We filed a no assets Ch 7 (mostly for outrageous medical bills due to my stepson develpoing a chronic illness.)
In 1999, I filed my 1998 taxes as a single parent who did in home daycare. I got audited and the IRS asked me for proof/reciepts for my income from my little in home daycare - I dont remember but I'm thinking my income was like 16000.00, if that. Anyhow, at the time I was involved with an abusive man. We had a major altercation and I packed up my children and left him. He ended up destroying the things I left behind, including all of my daycare reciepts.
So, I was not able to "prove" to the IRS that I actually made this money, to get my refund and EIC money. They ended up telling me that I owed like $8000.00
I never understood how, if I couldn't prove that I made the $$ and deserved my refund and EIC money, how they could then prove that I owe them the money from my earnings which I couldn't prove??? And certainly how could a person who made like 16000.00 doing in home daycare owe 8000.00?
:
I was much younger and dumber than and more stressed out and I tried to argue with them, but what did I know? I just ignore them after a while, what were they going to do? I had no money, no assets, not even a bank account....
So, all this time the money and interest has been adding up. I've since remarried and when we've filed taxes, they have taken out a chunk every year of what I owe them and give my husband some little refund since he files "innocent spouse." However, this has always really s*cked because we have been raising 7 kiddos and the EIC $$ would have been soooooooooo helpful every year.
Anyhow...does anyone know if bankruptcy wipes out this kind of IRS debt? The people at the bankruptcy attorney's office always seemed a bit flakey but they assured me a couple of times that it would be wiped out.
I can't remember the last time I've received a bill or anything from the IRS, its been probably 2 years.
I am thinking about calling them. I hate to even start talking to them again though. I wish there was info on their website where I could put my ss# in and it would tell me if I owe them money without me having to call them.
