IRS Debt Relief From A Fort Worth Attorney
The notion that tax debts cannot be forgiven in personal bankruptcies is a common misconception. While it is true that some taxes are not discharged in bankruptcy proceedings, others can be wiped away as part of a Chapter 7 or Chapter 13 filing.
The fact that it is challenging to determine which tax debts can be discharged and which ones cannot is evidence that enlisting the services of an experienced and knowledgeable Fort Worth bankruptcy lawyer is critical to receiving the maximum benefits of bankruptcy. The Steele Law Firm, PLLC, has helped hundreds of Metroplex residents resolve financial problems, including discharging tax debts, using the protections provided in the U.S. Bankruptcy Code.
Timing Is Critical In Achieving IRS Debt Relief
The only taxes that can be discharged in Chapter 7 bankruptcy are federal or state income taxes. Property taxes, tax liens, trust fund taxes and other non-income-related taxes cannot be discharged. In order to be discharged as part of a Chapter 7 bankruptcy, your tax debt must be:
- From a tax return that was due at least three years before you file for bankruptcy
- From a tax return that was filed at least two years before filing for bankruptcy
- Assessed by the Internal Revenue Service (IRS) within eight months (240 days) before you file for bankruptcy
Also, in order to have taxes discharged as part of a bankruptcy process, you cannot be guilty of intentionally evading tax laws.
Filing Bankruptcy Stops IRS Penalties And Collections
The IRS is a powerful entity that can be relentless when it comes to collecting back taxes. It also adds significant penalties that continue to accrue if you do not pay the balance due. Filing bankruptcy places an automatic stay on these actions. The penalties will not grow and the IRS will not be able to garnish your wages or liquidate your bank account.
The IRS is an aggressive creditor with unmatched power. As an bankruptcy attorney, I have extensive experience helping Texas residents get tax debt discharged or work out an IRS debt repayment plan in Chapter 13 bankruptcy.
Contact me to schedule a free consultation. I will review the facts of your case and recommend the best course of action.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.