Owing more taxes than you can pay is common for both business owners and individual taxpayers. Coming up with a plan to deal with them lowers stress. The IRS is a powerful creditor with extreme collection methods. The IRS can garnish wages even in Texas), levy bank accounts, and seize property. Relief from tax debt may be available through bankruptcy and non-bankruptcy alternatives.
“Tax Bankruptcy” is essentially a bankruptcy solution to a tax problem. There is no special bankruptcy for taxes. But with proper planning and timing, bankruptcy can offer, in specific circumstances, relief to taxpayers. In limited circumstances, taxes that meet certain criteria may be dischargeable in bankruptcy!
An agreement between a taxpayer and the Internal Revenue Service to settle a debt for less than what is owed. This program was designed to offer a taxpayer a “clean slate.” The IRS will accept an Offer that they believe represents an amount that is the most a taxpayer has the ability to pay. Both income and assets are considered.
An arrangement between the Internal Revenue Service and a taxpayer to make monthly payments on a tax owed. Can be up to 72 months — may be less than the full amount owed.
Read more about common problems related to taxes:
If you have received notice of intent to levy or garnish, you should call an attorney immediately.
Missing the final deadline to file a tax can have some serious consequences. Most tax resolution options require that you file all tax returns.
If you have significant tax issues, consulting with an attorney may help you decide on an appropriate course of action. For those who cannot afford an attorney, the IRS does offer a Taxpayer Advocate Service.
Your Next Step to Debt Relief
If you are struggling with debt, consult with an attorney who can give you guidance on options available to you. Each case is different and consultation with an attorney knowledgeable about the law as it applies to your particular circumstances is an important first step in resolving debt.
Read More About Taxes
- Collection of Delinquent Property Taxes on Your Home
- Discharging Income Taxes in Bankruptcy
- Effect of Tax Lien on Payment of Taxes in Chapter 13 Bankruptcy
- Loss of Home for Delinquent Property Taxes
- Non-bankruptcy Options for Tax Debt
- Property Tax Relief for Disabled & Elderly
- Special Relief for Veterans on Property Taxes
- Understanding Property Taxes (Ad Valorem Taxes)
Read More About Bankruptcy and Debt Relief
Chapter 7 – Usually the cheapest and fastest type of bankruptcy, Chapter 7 can wipe out credit cards, medical bills, and loans.
Chapter 13 – Does everything that Chapter 7 does, but with the added benefit of being able to help catch up on past due mortgages, car payments, and taxes.
Taxes – If you owe money to the IRS, there may be several different options for you, including some non-bankruptcy options.
Student Loans – There are many solutions to student loan issues, including getting a better payment plan, curing a default, and even loan forgiveness.
Debt Lawsuit Defense – When a creditor sues you over a debt, you can respond with a defense, which may allow you to win the lawsuit.
Loan Modifications – A special agreement between you and your mortgage lender might help you with a past due mortgage loan.
Debt Library – More in-depth articles on some of the more detailed areas of bankruptcy and debt relief.
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