It absolutely is possible to discharge and wipe out certain taxes in a bankruptcy! Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. However, you should consider bankruptcy as a solution to your tax problems only if you meet the requirements for discharging your taxes.
Chapter 7 provides for full discharge of allowable tax debts (such as personal income tax.) In a Chapter 13 bankruptcy, a payment plan usually requires repayment of some of the tax debts in full, with the remainder being paid usually at a steep discount.
If your back income tax debt meets all five of these rules, then the tax debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions:
If your case does warrant a bankruptcy option, we absolutely can help! At Huntsman | Lofgran | Walton pllc, we really focus on making the bankruptcy process as painless and complete as possible. Contact us today to learn more about how a bankruptcy could help you with your tax problems.
Not all tax debts are capable of being discharged in bankruptcy. For example, personal civil penalty assessments for unpaid business payroll taxes will never be dischargeable. If such is the case for you, perhaps an Offer in Compromise, or an Installment Agreement may be the better way to go. At Huntsman | Lofgran | Walton pllc, we pride ourselves on determining the best course possible to navigate your tax problem and then going to work to solve it! Call us today at 801-474-0031 or contact us to set up a free and thorough consultation to determine the best solution to your tax problem.
As local Salt Lake City Tax Attorney focused on IRS problem resolution, we can help you decide if Bankruptcy is the right solution to your IRS tax debt problem. Please call the Law Offices of Huntsman | Lofgran | Walton pllc at 801-474-0031 or contact Wasatch Front/Salt Lake Tax attorney Michael Lofgran for your free no-obligation, Tax and Bankruptcy consultation.