"You don't want to fight this fight alone. You need experts. You need Tax Defense Partners™ If you owe $10,000 or more in back taxes, are under audit, or have unfiled returns, they can help." - Rush Limbaugh
WHAT CLIENTS ARE SAYING:
Dear Mr. Rozbruch:
-J. Klatt, San Diego, CA
IRS Bankruptcy Filing - Discharge Back Taxes and IRS Debt
The IRS does not like to talk about the use of Bankruptcy to remove tax liabilities, but the reality is that many IRS taxes, penalties and interest do qualify for complete 100% discharge in Bankruptcy. At Tax Defense Partners, we are actually hired by the bankruptcy attorney to determine whether or not the taxpayer's taxes are eligible for discharge.
How to Obtain Tax Relief for Bankruptcy Filings
• In order for a taxpayer to benefit from the Bankruptcy laws and avoid paying income taxes, the taxpayer's income tax liabilities must qualify. We can help you determine if your IRS taxes, penalties and interest qualify for discharge in bankruptcy.
• There are 3 general rules that must be met in order to discharge income taxes: 1. The tax liability must be 3 years old or older from the "due date" of the return, including extensions, 2. The tax returns themselves (Substitutes for Returns are not eligible for discharge) had to have been filed at least 24 months before the petition date, and 3. 240 days must pass from date of assessment. There are certain events that can "toll" (stop) the 240 day "clock".
The Benefits of Hiring Specialized Tax Relief Experts
• Many taxpayers and bankruptcy attorneys file bankruptcy without understanding whether the taxpayer's income tax liabilities qualify for forgiveness. This often results in not discharging income taxes that could have been discharged if the taxpayer with a better understanding of Bankruptcy laws. Having expert representation can greatly improve your chances of successfully discharging IRS taxes, penalties and interest.
• Additionally, Congress enacted a sweeping new Consumer Bankruptcy law, In October 2005, which included many changes. Some of these changes do affect the ability to discharge income taxes. Therefore, it is highly recommended that the taxpayer seek out experienced legal counsel that specializes in tax bankruptcy.
• We can help you determine if bankruptcy is the best solution to solve your specific IRS problem. While it's possible to qualify for a complete discharge of you're IRS tax debt in bankruptcy, this may not always be the best solution and we can help you understand additional tax relief strategies that are viable options for reducing your tax obligation without the burden of a bankruptcy on your credit report. You may be eligible for the IRS Offer in Compromise program, which reduces or discharges the sum owed, or an IRS installment agreement of scheduled monthly payments that can help you achieve the fresh start you need for a new lease on your financial life.
• In most cases, if the taxes qualify, but the IRS filed a Notice of Federal Tax Lien, the Lien survives the bankruptcy even though the underlying dollar liability is discharged. Generally, the lien does not get "released" until the 10 year Collection Expiration Statute Date (CSED) has expired or there were no assets for the lien to attach to at the petition filing date in the first place.
• The most common types of taxes eligible for discharge in bankruptcy are old individual income taxes.
• Taxes, which are not eligible for discharge in bankruptcy, are Civil Penalties for payroll taxes.
For more information about discharging IRS tax debt in bankruptcy, check out these resources: