Reply To: Dismissing Tax Court Case while Client is in Bankruptcy

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#31251
Eric Green
Keymaster

Dawn
I would like to discuss the specifics of the case with you further as I do not fully understand what is happening here.
1. A bankruptcy will not discharge tax liens.
2. Liens can be stripped in a chapter 13. Thus, if the property is underwater on filing, the liens can be stripped to their fair market value.
3. Based on the information you have provided, it seems that the taxes will be full paid through the Plan and you want to get the liens off before full payment.
4. The IRS will not release liens until the completion of the chapter 13 plan.
5. If you are in tax court on a CDP and the chapter 13 plan has effectively given you your resolution alternative, what is the point of maintaining the tax case? However, withdrawing the tax case will not affect the liens either.

I suggest we speak so that I can get additional information and provide you accurate guidance.