Federal Tax Court Representation
If your due process appeal or protest is properly pursued, you can take your case to the Federal Tax Court. The U.S. Tax Court is a statutory court with its own set of peculiar procedures.
Many IRS taxes, penalties, and interest do qualify for complete discharge in Bankruptcy.
In order for you to use the Bankruptcy laws to avoid paying income taxes, your income tax liabilities MUST QUALIFY. Many taxpayers file bankruptcy without first understanding the rules and this often results in not discharging income taxes that could have been discharged.
The most common types of taxes eligible for discharge in bankruptcy are old individual income taxes. Taxes which are not eligible for discharge in bankruptcy are Civil Penalties for payroll taxes (The Trust Fund Penalty). The IRS may honor what would predictably happen in a bankruptcy without making you go through one by your filing of an offer in compromise.