Investopedia

Continue to Site »

IRS Publication 908

Filed Under » , , ,
Dictionary Says

Definition of 'IRS Publication 908'

A document published by the Internal Revenue Service (IRS) that provides information on how federal income tax should be treated in the case of bankruptcy. When an individual files for bankruptcy all assets are placed in a bankruptcy estate, which is assigned its own Employer Identification Number (EIN). In the case that chapter 7 or chapter 11 is filed by an individual, the bankruptcy estate is treated as a separate entity. A separate entity is not created for partnerships or corporations filing for bankruptcy.
Investopedia Says

Investopedia explains 'IRS Publication 908'

If an entity declares bankruptcy before filing a tax return or obtains an extension before bankruptcy proceedings begin, the IRS can ask the court to either dismiss the case or change the chapter filed. If the entity does not file a return or obtain an extension after 90 days, the court is required to dismiss the case or change the chapter filed.

IRS Publication 908 does not cover bankruptcy laws in detail, and is designed to give basic information.

Articles Of Interest

  1.

    Bankruptcy Filing Changes That Could Affect You

    When the economy is down, more people file for bankruptcy. Make sure you know about the changes that have been made to this process.

  2. When You Can't Pay Uncle Sam

    If you can't pay your taxes, there are some steps you can take to protect yourself. Discover your options here.

  3. Declaring Bankruptcy Is No Easy Out

    Going bankrupt can help pull you out of debt, but it's rarely the best option.

  4. Life After Bankruptcy

    Find out what you have to look forward to after filing for Chapter 7 or 13.

  5. Should You File For Bankruptcy?

    Find out how to determine whether this option will help or hurt your financial situation.

  6. An Overview Of Corporate Bankruptcy

    If a company files for bankruptcy, stockholders have the most to lose. Find out why.

  7. Bankruptcy Protection For Your Accounts

    Will the plan assets you've worked hard for be safe if you experience a personal financial crisis?

  8. Has Income Tax Become A Class Tax On The Poor?

    With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ...

  9. How The 2014 Obama Budget Could Affect Your Finances

    Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ...

  10. Austerity: When The Government Tightens Its Belt

    When a government tightens its belt in tough economic times the entire nation feels the squeeze.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center