At Camden & Meridew, P.C., we know just how quickly tax debts can spiral out of control, and the common stress of not having the means that are desperately needed to take care of you and your family. However, if you hire a tax lawyer before the situation has gotten out of hand, this can be avoided. There are options and possible solutions available.
Some tax debts are dischargeable through Chapter 7 bankruptcy. If income taxes are more than three years old and you filed tax returns related to them more than two years ago, the likely outcome is that you will not have to pay them. Tax obligations that are not dischargeable under Chapter 7 include taxes less than three years old, business taxes, sales taxes, and payroll taxes.
If you are ineligible for Chapter 7 or have decided that Chapter 13 is your better option, non-dischargeable tax debts can be included in your repayment plan. In addition, bankruptcy’s automatic stay applies to the IRS as well, meaning that it has to cease any collection efforts pending against you. Filing for Chapter 13 will also accomplish the discharge of penalties that the IRS has tacked onto your tax debt. In addition, no new penalties or interest will accumulate while you are in Chapter 13. Overall, if you take control of the situation now, you may pay significantly less money to the IRS by going through bankruptcy than you would if you had tried to work out a debt settlement agreement with them on your own.
Lastly, if bankruptcy is not the best option for you, then we can set up an installment agreement with the IRS, declare the tax debt uncollectible, or make an offer in compromise, depending upon the client’s circumstances.
We cannot emphasize enough the importance of talking about this situation with an attorney sooner rather than later. We will be happy to schedule an appointment with you and we offer flexible appointment times so that we can best answer your questions about bankruptcy tax relief, IRS debt settlement agreements, and how we can help. Call Julie Camden today about your tax problem at 317-770-0000.