Hammer is learning that the IRS can touch this!  Rapper, M.C. Hammer a/k/a Stanley Burrell has become the newest celebrity in the headlines for tax evasion.  The IRS claims that Hammer owes over $700,000 in taxes from 1996.  The IRS has turned the debt over to a collection company that has sued him.  Not coincidentally, 1996 was a financially bleak time for Burrell, as he took bankruptcy and ran from creditors.  1996 was a bleak year for anyone who had to listen to Hammer.

Anyway, why is the IRS surfacing to "hammer" a 15 year old debt?  The IRS only has 10 years to  collect an individual debt.  However, there are a plethora of exceptions to the general rule that toll (stop) the limitations period from running.  One of those tolling events is bankruptcy.  It is unclear without further research how long Hammer was in bankruptcy, but many bankruptcies take years to finalize.  

The IRS gets the benefit of all that time a taxpayer is in bankruptcy (the tolling mentioned above), plus a grace period of an additional 180 days.  This virtually assures that anyone who does not extinguish their tax liability in bankruptcy will have the IRS waiting for them when they come out of bankruptcy.

If you or a loved one are facing bankruptcy or just coming out of a bankruptcy, the IRS can be relentless, and the tax and bankruptcy laws are confusing.  Bankruptcy, if used properly, can be a valuable tool in discharging certain 1040 liabilities, if you otherwise qualify as a candidate for Chapter 7 bankruptcy.  It is imperative that you be informed of all your options and not leave this up to chance.  Hire a local, licensed lawyer to navigate you through these laws and options at this difficult time.  Don't wait, talk to lawyer, Travis Watkins, today at 1-800-721-7054.
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