There are three time periods that must be examined to determine whether tax due for a particular tax year can be discharged in a bankruptcy: (1) the date the return was due; (2) the date the return was filed; and (3) the date the tax was assessed.

1. The date the return was due: The date the return was due must be at least 3 years prior to the filing of the bankruptcy petition, including extensions.
2. The date the return was filed: The actual tax return must have been filed by the taxpayer at least 24 months before the bankruptcy filing date. If a substitute return has been prepared by the IRS, then any tax due from that return is not eligible for discharge in bankruptcy unless and until the taxpayer files his or her own return for that year and then waits the appropriate time period to be eligible for discharge.
3. The date the tax was assessed: At least 240 days must have passed since the tax authority assessed the tax due.

Not only is it important to make sure the particular tax seeking to be discharged meets the three-pronged test above, but the taxpayer must also be careful that any tolling (stopping) of these periods are met as well. For example, if you filed an extension for a particular year, then the date in item #1 above, the date the return was due, would be in October of the following year, not April. Also, if you’ve been in a prior bankruptcy during these times, which was ultimately dismissed, discharged or otherwise terminated, the time you’re in that prior bankruptcy also tolls the time periods above. In short, if you file bankruptcy too soon, you will eliminate your ability to discharge the tax.

Despite the relief the bankruptcy code offers for individuals owing taxes, the code is not quite as forgiving for those who owe other types of taxes. For those who are liable for trust fund taxes — such as payroll tax withholding, sales tax, and the like — the rules detailed herein do not apply. Generally speaking, absolute relief cannot be afforded for trust fund taxes, although partial relief can be had via the Trust Fund Tax Penalty. This details of this type of tax liability relief is not covered by this article. It is important to contact a qualified tax and bankruptcy professional for help in your particular situation.

For all tax problems, give me a call at 888-LAW-2470. I offer free consultations: Tell me what’s going on and I’ll direct you to a path for relief, whether that path includes bankruptcy or offers in compromise or some other solution.

What exactly is the purpose for such a request? One job seeker said the potential employer wanted to check on any “gang affiliations.” That potential employer, the Maryland Dept of Corrections, readily admitted that they routinely ask for Facebook login information to vet potential workers. That practice caught the American Civil Liberties Union’s attention in 2011. As part of the ACLU’s exploration into the practice, the DOC responded by advising that out of 2,689 applicants, they denied employment to seven potential employees specifically because of items found on their Facebook pages.

I’m not so sure I would be quite so matter-of-fact as to admit denying employment to anyone based upon information found in their Facebook profile. Federal law prohibits employers from asking individuals about their race, religion, marital or family status, birthplace, or age as part of a job interview. Yet, most of these answers can easily be discerned from a simple viewing the front page of a person’s Facebook profile. In example, my Facebook profile shows a picture of my son and that I am married. Simply clicking on the “About” link takes the viewer to an area that details my religious and political beliefs, my date of birth, and my hometown. These are all questions federal law prohibits an employer from asking, yet can easily be shown when an employer is allowed to log into a potential applicant’s Facebook profile.

Yesterday, Facebook released a statement on the matter: Releasing such private information compromises not only the integrity of the site’s security but also the privacy of the user and the user’s friends and connections. In short, any employer’s request for such information should be denied.

It may be that employers don’t fully understand that they are opening themselves up to legal troubles by asking potential employees for their Facebook login information. Simply put, to deny an employee a job after reviewing their Facebook profile could give rise to a discrimination lawsuit. It wouldn’t take much to argue that the employer saw on their Facebook profile that they were gay, or Catholic, or over 50, or Hispanic, and that is the real reason they weren’t hired. And that is illegal.

But perhaps that’s the real win for job applicants: A successful lawsuit may well provide them with enough money so they wouldn’t need a job after all.

Related articles

• Senators Ask Feds to Probe Requests for Facebook Passwords During Job Interviews(techland.time.com)

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• Canadian job applicants shouldn’t worry about Facebook-snooping bosses, experts say (thestar.com)
• Probe sought into password requests (politico.com)
• Facebook Says: No Employers No! (theurbanmen.com)

From the Buffalo News
http://www.buffalonews.com/business/article642859.ece

The Nonbusiness Energy Property Credit is aimed at homeowners installing energy efficient improvements such as insulation, new windows and furnaces. The credit is more limited than in the past years, but can still provide substantial tax savings.

• The 2011 credit rate is 10 percent of the cost of qualified energy efficiency improvements. Energy efficiency improvements include adding insulation, energy-efficient exterior windows and doors and certain roofs. The cost of installing these items does not count.

• The credit can also be claimed for the cost of residential energy property, including labor costs for installation. Residential energy property includes certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass fuel.

• The credit has a lifetime limit of $500, of which only $200 may be used for windows. If the total of nonbusiness energy property credits taken in prior years since 2005 is more than $500, the credit may not be claimed in 2011.

• Qualifying improvements must be placed into service to the taxpayer’s principal residence located in the United States before January 1, 2012.

Homeowners going green should also check out the Residential Energy Efficient Property Credit, designed to spur investment in alternative energy equipment.

• The credit equals 30 percent of what a homeowner spends on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines, and fuel cell property.

• No cap exists on the amount of credit available except for fuel cell property.

• Generally, labor costs are included when figuring this credit.

Not all energy-efficient improvements qualify for these tax credits, so homeowners should check the manufacturer’s tax credit certification statement before they purchase. Taxpayers can normally rely on this certification statement which can usually be found on the manufacturer’s website or with the product packaging.

Eligible homeowners can claim both of these credits on Form 5695, Residential Energy Credits when they file their 2011 federal income tax return. Because these are credits and not deductions, they reduce the amount of tax owed dollar for dollar. An eligible taxpayer can claim these credits regardless of whether he or she itemizes deductions on Schedule A.

One method utilized to determine disposable income is to net the totals found on bankruptcy Schedules I (income) and J (expenses). The calculation is simply to debtor’s gross monthly income less all reasonable and necessary monthly expenses for the household.

In computing expenses, many debtors forget to list items paid once or twice a year. These expenses should be included. For example, tax return preparation costs of $350.00 per year translates into approximately $29.00 per month. Accordingly, that amount should be included on Schedule J. Oil or propane deliveries may occur only three or four times a year, but the total amount should be pro rated into the monthly expense budget. Car repairs, haircuts, school trips and other non-monthly expenses should also be handled the same way.

Certain expenses not included in determining monthly disposable income include any unsecured debt included in the bankruptcy. Monthly credit, store and gas cards, and unsecured personal loans, which are expected to be either discharged in full or paid at a percentage through the plan, should not be deducted on Schedule J and not included in the disposable income computation. Voluntary retirement account payments may not be considered “reasonable and necessary.”

When preparing an expense list for your attorney in anticipation of filing for bankruptcy, don’t forget to include irregular expenses, as they can make an impact ont he amount amount truly at your disposal to fund your plan.