Tax Resolution And Filing For Bankruptcy
- May 22, 2019
- Posted by: asal
- Category: Tax Relief
Many Americans fall behind on their back taxes. Whether you’re an individual or a business, there are many reasons why you might get yourself into tax debt with the IRS. Having tax debt with the IRS is always unsettling. However, you can’t ignore the IRS forever. At some point, the IRS will come calling asking you to pay your back taxes. They can come after your money in the form of a bank lien, wage garnishment, or seizure of property and assets. If you have overwhelming back tax debt, you might be considering bankruptcy to clear your tax debt. While you should never let your back tax debt reach this point, sometimes it’s unavoidable. If you’re looking for back tax help and considering filing for bankruptcy, talk to a tax attorney first. Bankruptcy is one way to get tax resolution, but it’s not for everyone.
Is Bankruptcy A Tax Relief Option?
Taxpayers facing back tax debt can file for bankruptcy as a tax resolution option. However, you can’t file bankruptcy for all your tax debts. Every chapter of the bankruptcy code rules has a different set of requirements. Section 7 of the bankruptcy book eliminates all dischargeable back tax debts. This bankruptcy strategy is for taxpayers who are unable to pay back income tax debt. However, getting approved for this bankruptcy option is difficult. If you’re considering bankruptcy to eliminate back taxes, consult a tax relief services firm first.
Does Filing For Bankruptcy Clear Back Tax Debt?
Depending on the nature and circumstances of your tax debt situation, filing bankruptcy can help. Some tax debt is dischargeable, forgivable, or manageable in a bankruptcy filing. The IRS considers specific criteria when deciding whether a taxpayer or business is eligible for complete tax forgiveness, including:
- The filing date for the tax returns. The IRS is more likely to help if you pay your taxes on time.
- Age of the taxes
- Date of assessment of the taxes
- If the IRS believes you willfully attempted to evade payment of the tax by fraud. If the IRS finds this to be true, they will dismiss your bankruptcy filing.
Requirements for Tax Discharge With Bankruptcy
There are several requirements to meet before you can solve your bankruptcy back tax debt. To be clear from all income tax debt, you will have to meet the following minimum requirements:
- Must be three years since your tax returns were last due
- A taxpayer must have filed tax returns promptly, or it’s been two years since filing
- No fraud attempts at tax evasion
- IRS has not assessed taxes in the last 240 days
However, there are always exceptions to the rule when seeking bankruptcy to clear your back tax debt. Never attempt to file for bankruptcy on your own. Before you try any tax relief tactics, seek out the help of a tax attorney. A tax resolution company can help you determine the best way to settle your back taxes.
Consequences of Filing For Bankruptcy
If your bankruptcy filing to clear back taxes is successful, it remains on your record for seven to ten years. In this period, it will become tough to find a lender from whom you can borrow. It can also be challenging to buy a home or a car. If you do take out a loan, the interest rate will be high. Taxpayers who know the cons of filing for bankruptcy look for ways to eradicate back taxes without filing for bankruptcy. If you are one of them, you should hire a tax attorney who knows the ins and outs of the IRS. A tax resolution company will also be aware of the current tax code and changes to the law.
Tips for Filing for Bankruptcy To Settle Back Taxes
If you file for bankruptcy to settle back taxes, here are tips Platinum Tax Defenders want you to know beforehand.
- Always see a tax attorney for a bankruptcy case.
- If you haven’t submitted your taxes for the current year, consider doing so before.
- Make sure your tax attorney has your recent tax records
- Do not pay bills with your tax refund, if you receive one when filing for bankruptcy.
- File taxes on time each year.
Resolving Back Taxes Without Bankruptcy
There are other ways to settle back taxes without bankruptcy. Seek out the help of a tax attorney who knows all of your options. To solve your tax issue, you can try to arrange payment directly. If you have outstanding back taxes, contact the IRS immediately. You will know as soon as you have back taxes to pay because the IRS sends you a letter. If you have a genuine reason for delinquency, the IRs is more likely to accept a payment plan. Also, if you have a professional tax attorney negotiating for you, the IRS is more likely to approve your filing. Payment plans entice large numbers of taxpayers. However, having a payment plan doesn’t mean you’ll be paying only the outstanding balance. When you owe back taxes, the IRS keeps on charging interest and penalties until you pay in full. A tax attorney can help quickly settle back taxes.
Settle Your Back Taxes With Platinum Tax Defenders
For back tax help, your best bet is to consult a tax resolution professional. The tax relief experts at Platinum Tax Defenders have years of experience helping clients settle their tax debt. If filing for bankruptcy seems like your only option, it isn’t. There are many options that the IRS offers to settle back taxes. A tax resolution professional can advise on which tax relief option is best for your situation. Get back tax help by calling the experts at Platinum Tax Defenders today. The longer you have your back taxes, the more debt you will have. Every month the IRS is charging penalties and interest on your tax debt. If you don’t pay your back taxes, the IRS can take action on you. Before you lose your home or worse, call Platinum Tax Defenders today. We offer free consultations.