Everyone wants to be able to make their tax payments on time, but sometimes financial hardships and other life factors can make this difficult to do. For some, it has become impossible to deal with their mounting tax debts. Our experienced Danbury, CT tax lawyer can help you achieve the tax relief you are looking for, so that you no longer carry the burden of these debts on a daily basis. It can be immensely freeing to find solutions that bring ease. Please don’t hesitate to speak with our team at The Law Offices of Neil Crane for individualized support. There may be solutions that you didn’t realize are available to do. To learn more, contact us as soon as you can.
Tax Debt Bankruptcy
There are several possible solutions to your tax debt. After consulting with you further, we may suggest filing for bankruptcy. Through Chapter 7 and Chapter 13, you can halt tax penalties and interest right away. If you file for Chapter 7 bankruptcy, you will receive an immediate stay and have qualifying tax debts discharged. Through Chapter 13 bankruptcy, you can establish a reorganization of your debts through committing to a 3-5 year payment plan. The IRS offers a 6-month plan, but having a longer span of time can offer you more ease and less pressure.
Discharging Unpaid Taxes
The U.S. Bankruptcy Code allows a discharge of certain back taxes, but there are conditions that apply. Firstly, the taxes must be categorized as personal income tax. In general, most business taxes are not eligible for discharge. Whether a business can have their back taxes eradicated depends on the classification they fall under, such as payroll or sales taxes. Secondly, the taxes have to be at least 3 years old. Taxes that have accumulated sooner than that may not be dischargeable. Furthermore, there must be no evidence of taxpayer misconduct. Someone’s individual taxes may not get discharged through bankruptcy if the back taxes were from misconduct, like filing a tax return that was fraudulent or failing to file altogether. If the IRS has sent you a certified letter saying that you owe taxes, you must respond within 30 days.
Do not ignore any letters from the IRS regarding back tax debt. Reach out to our knowledgeable tax attorney about what to do next.
Your Tax Debt Solutions
Knowing that you have tax debts can be stressful, as no one wants to be in debt to the government. The IRS tends to be viewed as an intimidating presence that won’t relent in seeking unpaid tax debt from individuals and businesses. If you are facing an issue regarding past debts or want to learn more about possible solutions, then speak with our Danbury tax attorney at your earliest convenience. The team at The Law Offices of Neil Crane have helped so many people in a similar predicament as you, who just want to get rid of debts so they can have more peace of mind. Do not hesitate to contact us today for assistance.
