The new bankruptcy reform was signed into law by the president in April, 2005. It willbecome effective on October 17, 2005. . Generally families earning more than the state median, about $45,000 in Illinois, will be will face huge roadblocks to filing a Chapter 7 bankruptcy on consumer debts and only be allowed to file Chapter 13. Prior to seeking the protection of bankruptcy debtors will be required to pay for debt counseling as a first step. The following is brief summary of the major tax related provisions of the act.
On January 9, 2012 the Internal Revenue Service reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes and announced the collection of more than $4.4 billion so far from the two previous international programs.
Procedural Requirements for Imposition of Penalties and Additions to Tax
The Internal Revenue Service Restructuring Act required that each notice imposing a penalty include the name of the penalty, the Code section imposing the penalty, and a computation of the penalty. The Act also requires the specific approval of IRS management to assess all non computer generated penalties unless excepted. This provision does not apply to failure to file penalties, failure to pay penalties, or to penalties for failure to pay estimated tax.