Tax debts often pose the biggest hurdle in a client's financial crisis. This essential course equips tax professionals with the knowledge to strategically navigate the intersection of tax liabilities and U.S. bankruptcy law. We will demystify the bankruptcy process, focusing specifically on how different tax debts are treated, when they can be discharged, and the critical issue of lien survival. You'll gain practical tools, including understanding state-specific exemptions and homestead protections, to better serve financially distressed clients and know precisely when to recommend consultation with a bankruptcy attorney.

Key Takeaways

• Differentiate the types of bankruptcy under the U.S. Code and their relevance to tax cases.
• Determine the precise factors—like timing rules and late-filed returns—that govern a tax debt's dischargeability in bankruptcy.
• Assess the treatment of tax liens in bankruptcy and identify situations where a lien will survive discharge.
• Recognize the impact of key state-specific rules and exemptions (e.g., homestead) on tax debt outcomes.
• Evaluate client scenarios to make timely, informed referrals to a bankruptcy attorney.