Bankruptcy & Tax Debt – Does Filing Bankruptcy Get Rid of IRS Back Taxes & Other Tax Debts?
Back taxes owed to the IRS and other tax debts are a source of frustration for many of our clients. It’s one of the most common form of debts, and it can become a major burden if it’s allowed to spiral out of control. One frequent question we encounter, therefore, is whether or not bankruptcy helps you get rid of tax debt.
Many forms of tax debt cannot be eliminated by bankruptcy. However, that doesn’t mean that you’re out of luck entirely. It is an incorrect but commonly cited misconception that you cannot discharge any type of tax debt via bankruptcy.
It’s a good thing then that’s not the case. If you meet a specific set of circumstances as you file chapter 7, you can successfully eliminate tax debt with bankruptcy. You may be able to discharge outstanding income taxes by meeting the right criteria. However, payroll taxes and fraud penalties cannot be discharged.
Goren & Tucci, LLC, can provide you with a detailed analysis of the options to resolve tax debt and tax liens. “This is something that sets us apart,” says Brian A. Tucci, Esq.
Our experienced team is intimately familiar with the rules and regulations regarding discharging tax debts with bankruptcy. We’ll walk you through the process, make sure you understand what is and is not eligible to be discharged and why, and then determine how we may be able to effectively remove as much tax as possible. “This may mean waiting to file and developing a long-term strategy to ensure you discharge as much debt as possible.”
If you’re concerned about your own IRS back taxes and other tax debts or penalties, then call Goren & Tucci Today at 301.718.1892. We’ll be happy to provide you with a free consultation and begin discussing your case to determine the best and most successful approach for you.