If you do not pay your taxes on time, you may be subject to an IRS audit and other harsh penalties. Many Americans have significant tax problems, and can unintentionally fail to pay taxes because of circumstances that are beyond their control. With so many Americans owing federal taxes, the IRS can take quite strict measures, such as wage garnishment or property seizure. We know this like no one else, and we are here for you to help with tax debt relief.
Helpful Information About Tax Debt Relief
Tax debt relief is a sequence of actions aimed at:
- Reduction of the amount of taxes that people owe.
- Helping to develop a repayment plan that the debtors can afford.
At the Leinart Law Firm, our experienced tax debt attorneys and tax professionals will thoroughly analyze your case and come up with an action plan that best suits your financial situation.
How to Get Tax Debt Relief
There are several ways to get debt relief or resolve a tax dispute, and our Texas tax lawyers can help you with each of them. Here’s what we can offer:
The “Currently not Collectible” program
Within this program, the IRS voluntarily agrees not to collect on the tax debt for about a year. To become eligible for the program, you need to provide the IRS with evidence that you are currently unable to pay. Our qualified tax debt relief lawyers will help you figure out how to do this quickly and efficiently.
The “Offer in Compromise” program
This is a program where you can settle your tax debts for less than what you owe. Essentially, within an Offer in Compromise you can pay a small amount as the full and final payment. If you are eligible for the Offer in Compromise program, you can save a lot when it comes to taxes, penalties, and interest.
It is possible to eliminate the tax debts by filing for bankruptcy, whether it be a Chapter 7 or Chapter 13 case. Under Chapter 7, you can fully discharge your debts, whereas Chapter 13 provides a payment plan to repay some debts and discharge the remaining debts. Our attorneys at Leinart Law Firm has already filed hundreds of bankruptcy cases. Based on our vast experience and skills, we can offer a solution that will work best for you.
This is a monthly payoff plan that works well for fraudulent investment scheme victims. According to the United States Tax Code, you can use installment agreements to recover up to 40% of your losses. There are different types of installment agreements, such as guaranteed installment agreement, partial payment installment agreement, and non-streamlined installment agreement. If your case is eligible for an installment agreement, our lawyers will work with you to figure out which agreement type will fit you most.
Tax liens and levies withdrawal
Tax liens and levies involve either IRS’s legal claim to the debtor’s property or a seizure of the property. There is a possibility to withdraw such liens and levies within 30 days, but it is not easy to do without a tax debt relief expert.
Innocent spouse relief
If you have taken over your spouse’s IRS debt as a result of divorce, it is possible to discharge that tax debt with the help of a qualified divorce and bankruptcy attorney.
Tax Debt Relief in Texas
If you owe taxes to the IRS (Internal Revenue Service) or the Texas Department of Revenue, you have a possibility of tax debt relief by filing Chapter 7 bankruptcy. To find out if you qualify for Chapter 7 bankruptcy, answer the following questions:
- Have three years passed since you should have filed the taxes?
- Have 270 days passed since the taxes were assessed against you?
- If you filed tax returns, have two years passed since the filing?
If your case does not qualify for Chapter 7 bankruptcy, you can still try to obtain debt relief by filing Chapter 13 bankruptcy. One advantage of doing this is that you can suspend any tax penalties that you are facing. However, Chapter 13 strategy has certain limitations when dealing with tax debt. Under Chapter 13, you should pay the entire tax debt amount according to the payment plan that is proposed by bankruptcy lawyers. So your decision for Chapter 13 bankruptcy should depend on the size of your debt.
If you are looking for debt relief solutions in Texas, you have come to the right place. Leinart Law Firm offers a free initial consultation by a qualified lawyer that will show you the level of our professionalism. Call us today to get a complimentary consultation and be sure that we’ve got you covered no matter what case you have.
Can Unpaid Taxes be Discharged through Bankruptcy?
While most tax debt is not dischargeable through bankruptcy, some federal income taxes can be discharged through Chapter 7 or Chapter 13 bankruptcy. In general, under Chapter 7 or Chapter 13, qualifying income tax debt can be wiped clean. Non-qualifying back taxes can be paid back in installments under Chapter 13, which stops interest and penalties to the IRS.
However, there are a number of qualifying factors that must be taken into account before it can be determined if back taxes can be discharged through bankruptcy. If you owe taxes and are considering filing for bankruptcy, it’s important to talk to an experienced bankruptcy lawyer who can evaluate your situation and discuss the options available to you.
Discharging Tax Debt through Chapter 7 Bankruptcy
Personal back income tax can be discharged through Chapter 7 bankruptcy. In general, income tax debt, sales tax debt and payroll tax debt can be discharged through bankruptcy. However, in order for tax debt to be eligible for discharge under the terms of Chapter 7 bankruptcy, the following requirements must be met for each tax year of tax debt to be discharged:
- Unpaid tax debt must be part of a tax return that is at least three years old.
- The unpaid tax debt to be discharged must be part of a return that was filed at least two years ago.
- The tax debt to be discharged cannot be part of a fraudulent tax return.
- You haven’t been convicted for tax evasion or charged with tax fraud.
- Your tax debt must be assessed by the IRS 240 days prior to your filing for bankruptcy. If you are unsure whether the IRS has assessed your debt, you can contact the agency to order a transcript.
Tax Debt and Chapter 13
By and large, the same rules regarding the discharge of tax debt that apply in Chapter 7 apply in Chapter 13. In Chapter 13, however, any tax debt that is not dischargeable may be incorporated into your repayment plan.
Additionally, once you file for Chapter 13 bankruptcy, the IRS cannot assess future penalties on the tax debt you owe. Consequently, when you pay back your tax debt under Chapter 13, interest will not accrue on the tax debt paid back, saving you substantial money in the end.
Talk to Our Texas Tax Lawyers for a Free Consultation
If you are facing a tax audit or other legal issues related to unpaid state and federal taxes, contact our tax attorneys today for a free consultation.
Leinart Law Firm has years of experience in tax litigation, helping businesses and individuals seek the relief they need and settle debts with the IRS and the Texas Department of Revenue.
With conveniently-located law offices in Dallas, and Fort Worth, we’re ready to help you get out of debt. For legal advice on all of your debt relief options, get a free consultation with one of our Texas tax attorneys today.
To schedule a free consultation with one of our tax debt attorneys, fill out the contact form at the top of the page, email firstname.lastname@example.org or call our offices for more information.