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.
In April the Justice Department filed a lawsuit that sought to force HSBC India to reveal the names of U.S. customers with secret accounts, and a U. S. District subsequently granted the IRS authority to issue John Doe Summons for the names of U. S. residents of Indian descent who have had NRE accounts (Non-resident External Rupee Accounts) at the bank.
This article, authored by Robert E. McKenzie, was originally published in CPA Magazine.