Do You Owe Back Taxes? Are you worried about unpaid taxes owed to the IRS? Ignoring taxes is serious, as the IRS can be relentless in their collection efforts. However, if you happen to owe Federal or State taxes (or have other debts) there is assistance available from Federal Laws.
Many Income Taxes Can be Wiped Out!
The first step is to see how old the taxes owed are. Why? If you owe taxes that are from over three years ago, it is likely that you will not have to pay a penny of them back. Many people (and even attorneys) are not aware that old income tax debts are often dischargeable! This means if you file bankruptcy, the applicable taxes will never have to be paid back - ever. In order to determine if back owed income taxes are able to be discharged, we apply four rules to the taxes.
Bankruptcy Can Stop Tax Garnishments!
Do you have a garnishment on your wages? This creates a huge amount of pressure since a garnishment takes money right out of your paycheck - money needed for basic necessities like food and shelter. The moment you file bankruptcy, the tax garnishments end! Even if the taxes are too recent and are thus still owed, the garnishment will end and you can attempt to negotiate a payment plan that is more affordable.
But Aren’t There Taxes that can’t be Eliminated?
Yes, some taxes must be paid back. However, you can roll your delinquent taxes into a payment plan of up to 60 months under a Chapter 13 Bankruptcy. This will allow you to create a payment plan that is affordable, and even make the IRS take small payments as low as $52 per week! And a huge plus is that you can often force the acceptance of payments without interest! This option is much better than dealing with a wage garnishment, levy on bank accounts or seizure of personal property. It allows you to take control of the situation, and tailor a repayment plan that works for your situation.
Disclaimer: Taxes and Bankruptcy are complex issues and each situation is different, and individual results vary depending on a number of factors. This article is only an introduction to a possible solution. There are several rules that apply to whether or not taxes are dischargeable. It’s always best to speak with an experienced bankruptcy attorney to review your options in detail.
The bottom-line: Tax problems never just disappear - they only get worse until you deal with them! If you’d like to find out how you can deal with your debt, call 800-404-0018 today and set up your free initial consultation with the bankruptcy team at Lincoln Law.