Erase Tax Debt and IRS Liens
If you are currently overwhelmed by tax debts and IRS liens or fines, you have two options. You can either make a payment agreement with the Georgia Department of Revenue or file for bankruptcy. There’s no point in ignoring the problem because, with the inevitable interest, fees, and penalties, the nickels and dimes will add up over time and simply exacerbate the severity of the situation.
Every situation is unique and the best plan of action will depend on numerous factors that a good GA bankruptcy attorney will be able to assess. My team of bankruptcy attorneys at the Law Offices of Stanley J. Kakol has substantial experience dealing with bankruptcy tax-debt relief and can help develop a bankruptcy plan for you that will ultimately erase tax debt and get rid of IRS liens and related fines.
However, you do need to know that there are rules and it isn’t a simple matter, but my team knows which tax debts can be discharged and the process required to discharge them. SJK has helped many people file for bankruptcy and get rid of tax debts that have amounted to more than $704,000.
Dischargeable Tax Debts and IRS Liens
You might have heard people say that filing bankruptcy won’t erase a tax debt in Georgia. Indeed, many tax debts cannot be eradicated in bankruptcy. But there are ways of wiping out tax debts if all these conditions are met:
- The tax debt is for income tax. You cannot discharge fraud penalties or payroll taxes in bankruptcy.
- You haven’t committed fraud or willfully evaded paying taxes. Bankruptcy will achieve nothing if a tax return you filed was fraudulent or you used a Social Security number that was false.
- The tax debt should be older than three years. This means that the tax return was originally due at least three years prior to filing for bankruptcy.
- Your tax return must have been filed at least two years before you file for bankruptcy. Some courts will allow discharge of a tax debt that is part of a late return, but many won’t.
- You must qualify in terms of the 240-day rule, which means the income tax debt was evaluated or assessed by the IRS 240 days or more before filing for bankruptcy. Alternatively, it shouldn’t have been assessed at all.
Tax liens can’t usually be removed from “real” property you own. But it is possible to avoid future tax liens.
There are many more rules, and it’s a complicated legal process that only an experienced bankruptcy attorney will be able to help with.
The Best Bankruptcy Chapter to Erase Tax Debts and IRA Liens
For people who qualify for a Chapter 7 bankruptcy, this is the simplest and very best way to eliminate income tax debt.A Chapter 7 bankruptcy will cancel your obligation to pay the tax debt, but it won’t get rid of previously recorded tax liens. It will though stop the IRS from trying to attach your salary, wages, or bank account. If the IRS successfully registered a tax lien on the property prior to you filing for bankruptcy, you won’t be able to discharge the lien. This means that you won’t be able to sell the property unless you pay off the lien first. If you don’t qualify for a Chapter 7 bankruptcy, the only option, if allowable, will be to add tax debts to your bankruptcy repayment plan.
Let Us Help You Eliminate Tax Debt with Bankruptcy
A qualified bankruptcy attorney from The SJK Law Firm will establish whether your income tax debt, including late returns, is eligible for discharge. Your SJK Bankruptcy attorney will also develop a plan of action that focuses on your financial commitments and takes care of issues like asset retention and retirement protection.
Call my offices to organize a free assessment of your unique situation and to see what can be done to help you erase your tax debts and IRS liens with an effective debt elimination or debt reduction plan. I am certain you won’t be disappointed.