The podcast, originating from a law firm, focuses on Chapter 11 bankruptcy as a strategic option for businesses facing significant financial challenges, particularly in the DuPage area. It explains that this type of bankruptcy is not an admission of defeat but rather a path to reorganize debts, renegotiate contracts, and establish a sustainable financial foundation for businesses with a viable future. The text clarifies common questions about the process, such as its impact on business continuity and debt restructuring, emphasizing that businesses generally retain control of daily operations. Ultimately, the source positions Chapter 11 as a "fresh start" for businesses to emerge stronger, especially for those struggling with tax debt.

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Bankruptcy tends to get a bit of a bad rap. You probably picture financial ruin and losing everything. But that’s not always what it means, especially when you’re facing a mountain of tax debt.

While you might think your only choice is a rigid payment plan or a long-shot Offer in Compromise, there’s another powerful, court-backed tool that could be an option for your situation: Chapter 13 bankruptcy (aka: the wage earner’s plan).

With a Chapter 13 filing, you can reorganize your finances and get a fresh start, often while preventing foreclosure of your DuPage home or the liquidation of your assets. And yes, it can be a game-changer for your tax debt as well, and that’s what I want to focus on today.

https://thinkingoutsidetheboxlaw.com

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630-225-9840

This podcast from Thinking Outside the Box Law, Inc. announces a significant development from the IRS, ILM 202511015, which provides new avenues for tax relief for victims of online scams. The guidance clarifies that losses from scams with a profit motive, like investment or phishing schemes, may now be tax-deductible under IRC § 165(c)(2). It specifies that the deduction should be claimed in the year the theft is discovered and recovery is deemed unlikely, based only on the actual amount invested. However, the document emphasizes that scams without a profit motive, such as romance scams, are not currently deductible, and these new rules differ from existing Ponzi scheme tax relief.

https://thinkingoutsidetheboxlaw.com

email@otblaw.com

630-225-9840