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We failed to appeal 'offer in compromise' in time. BOE sent us 'notice of levy' and took money from bank. Can I still re-appeal?

Los Angeles, CA |

We owe sales tax at BOE for a failed business from while back. We're personally liable for the unpaid sales tax and tried to file Offer in Compromise, but was denied (offer amount may have been too little) so we were about to file appeal with slightly bigger offer amount, however, we must have not filed appeal on time, and BOE has already sent me 'notice of levy' and they've took $100 out of our bank (that's all we had).

We don't have assets (only 2 old cars that we need to keep current low paying job or to go to hospital ( i have asthma and diabetes)) and are far below federal poverty income line. We are planning to file chpt. 7 bankruptcy but wondering if that will dissolve this BOE debt and levy. We also have debt with IRS on the business tax as well.

Not sure what to do.

Attorney Answers 2


  1. A BK will not discharge taxes owed to the BOE for sales tax. Depending on many factors a Chapter 7 BK may reduce or eliminate your IRS tax debt. Hopefully, you have filed all your income tax returns timely. If so, generally income taxes that are older than 3 years may be discharged in a Chapter 7 but there are several technical requirements that must be met.

    You should immediately and personally consult with a BK lawyer. However, before that consultation will be useful you will need to gather up all available information regarding your debts and income, especially as it relates to your IRS issues, so it can be reviewed and considered as part of your consultation.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for general information only. They are not legal advice. Answers must not be relied upon. Legal advice must be based on the interplay between specific exact facts and the law. This forum does not allow for the discussion of that interplay. My answer to any specific question would likely be different if that interplay were explored during an attorney-client relationship. I provide legal advice during the course of an attorney-client relationship only. The exchange of information through this forum does not establish such a relationship. That relationship is established only by personal and direct consultation with me followed by the execution of a written attorney-client agreement signed by each of us. The communications on this website are not privileged or confidential and I assume no duty to anyone by my participation on Avvo or because I have answered or commented on a question. All legal proceedings involve deadlines and time limiting statutes. So that legal rights are not lost for failure to timely take appropriate action and because I do not provide legal advice in answer to any question, if you are an interested party you should promptly and personally consult with an attorney for legal advice. Also, see Avvo's terms and conditions of use, specifically item 9, incorporated by this reference


  2. If the primary reason for contemplating bankruptcy is to discharge your federal tax liability then bankruptcy would not be the best solution. Bankruptcy cannot discharge certain types of taxes. Nondischargeable taxes in bankruptcy include excise tax such as sales tax.

    Nondischargeable excise taxes that are claimed by a governmental unit must relate to transactions for which a tax return is last due:
    (1) If a tax return is required to be filed then the excise taxes are not dischargeable if they are within three years from when the return is due (plus extension of due date for the return) before filing a bankruptcy petition.
    (2) If a tax return is not required to be filed then excise taxes are not dischargeable if they arise from transactions that occurred within three years before filing a bankruptcy petition.

    Regarding your business taxes, you have to elaborate on what specific type of taxes are your business taxes. Certain business taxes such as employment taxes are also not dischargeable in bankruptcy.

    You should consult a tax attorney to attempt another offer in compromise or try an installment plan. Currently not collectible status is also another temporary solution where the Internal Revenue Service will suspend their collection actions against you because of your financial situation. This allows you time to decide on your best options.

    The materials you obtain from this website by Attorney Austen Na is for informational purposes only. The materials are not legal advice, and they are not intended to be legal advice. The materials do not necessarily reflect the opinions of Attorney Austen Na. The materials are not guaranteed to be complete, correct, or current. The use of this website does not create an attorney-client relationship between you and Attorney Austen Na. You should not act or rely on the materials from this website without consulting an attorney licensed in your jurisdiction for advice regarding your individual circumstances. We invite you to contact Attorney Austen Na with the NA Law Firm, and we welcome your calls, letters, and electronic mail. However, please do not send any confidential or privileged information to the NA Law Firm until such time when an attorney-client relationship has been established or you have received written agreements from the NA Law Firm to provide the legal services that you requested. Your communications with the NA Law Firm may not be considered as confidential or privileged unless an attorney-client relationship has been established or you have received written agreements to provide legal services for you from the NA Law Firm.

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