Does the IRS have to leave me alone if I file for bankruptcy?

While creditors have to take a "hands off" approach while you are in bankruptcy, remember that the IRS is no ordinary creditor. The automatic stay still applies to the IRS in that they cannot seize your income, your property or issue a tax lien while you are in bankuptcy, but they can issue a deficiency notice, audit you or demand that you file your tax return as these are not attempts at collection but rather other IRS functions.

Bankruptcy law is full of nuances and exceptions. If you are considering bankruptcy and also having problems with the IRS, be sure to talk to a bankruptcy attorney or request a copy of our free debt book.

Carol O'Connor Cadiz
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Attorney & Owner at O'Connor Cadiz Law: Bankruptcy, Injury, Real Estate & Mediation