Tax Issues And Bankruptcy
For many individuals, unpaid taxes represent the bulk of their unmanageable debt and the reason they are contemplating filing bankruptcy.
It is frequently misstated that tax debt cannot be discharged in a bankruptcy. In fact, there are many different factors that determine whether or not taxes can be discharged by bankruptcy, including the type of tax debt and how old the tax debt is.
Taxes and foreclosure — If you lose your home through the foreclosure process, you may be able to avoid taxes associated with that property.
The experienced attorneys at Goldsmith & Guymon, P.C., in Las Vegas, Nevada, can help you understand what you need to know about tax issues and bankruptcy. Many individuals who file bankruptcy without legal counsel end up paying taxes that could have been discharged.
Tackling Tax Troubles On Your Behalf
Individuals filing Chapter 7 bankruptcy can discharge tax debt if it is more than three years old, it has been more than two years since the return was filed, and it has been more than 240 days since the tax was assessed.
Taxes cannot be discharged if the taxes were filed late and within the two years prior to the bankruptcy filing, or the taxpayer sought to commit fraud or evade taxes.
If a tax debt cannot be discharged in a Chapter 7 filing, a Chapter 13 bankruptcy is available. The amount you pay will still be significantly less than if you do nothing and your wages are garnished. In addition, penalties and interest can be reduced or eliminated.
If your taxes are not discharged or reworked through Chapter 7 or Chapter 13 bankruptcy, we can assist you in creating an installment agreement with the Internal Revenue Service or negotiating an offer in compromise (OIC). An OIC allows you to pay a smaller lump sum to fully satisfy the tax debt.
Beware of companies that advertise offers to help individuals settle tax debt for “pennies on the dollar.” There have been widely reported news stories about these companies charging significant up-front retainers and failing to deliver any solutions. The individual may be out $1,000 or more and still owes the full amount in taxes.
Questions About Tax Issues In Bankruptcy? Contact Us.
Our experienced bankruptcy lawyers can review your tax liability during a consultation and provide a summary of your options. Call 702-475-9463 or email us to schedule an appointment. We represent clients in Las Vegas, Summerlin, The Lakes, and beyond.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.