Erase Tax Debt and IRS Liens
If you are currently overwhelmed by tax debts and IRS liens or fines, you can either make a payment agreement with the Georgia Department of Revenue or file for bankruptcy. There’s no point ignoring the problem because, with the inevitable interest, fees, and penalties, the nickels and dimes will add up over time and compound the severity of the situation.
Your situation is unique and the best plan of action will depend on numerous factors that a good GA bankruptcy attorney will be able to evaluate. The team of bankruptcy attorneys at the Law Offices of Stanley J. Kakol have substantial experience dealing with bankruptcy tax-debt relief and can help develop a bankruptcy plan that will ultimately erase tax debt and get rid of IRS liens and related fines.
There are rules and it isn’t a simple matter, but our team knows which tax debts can be discharged and the process required to discharge them. We have helped many people file for bankruptcy and get rid of tax debts that 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. It is true that 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 very best and the simplest way to eliminate income tax debt.
A Chapter 7 bankruptcy will cancel your personal 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 will be to add tax debts to the repayment plan, if allowable.
An Experienced Georgia Bankruptcy Attorney Will Advise
A qualified bankruptcy attorney from the Law Offices of Stanley J. Kakol will establish whether your income tax debt, including late returns, is eligible for discharge. Your Kakol 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 us to organize a free assessment of your situation and see how we can help you erase your tax debts and IRS liens with an effective debt elimination or reduction plan.