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Can I get debt relief from my taxes?

On Behalf of | Mar 6, 2019 | Chapter 7 Bankruptcy, Firm News

Tax season is not always a pleasant time of year. While some Florida residents are expecting to receive a nice refund, you might be struggling with the reality that you are still not quite caught up on the taxes that you already owe. While it might seem impossible, tax debt relief is possible. Here is what you need to know.

Not all types of tax debt can be discharged during bankruptcy. Chapter 13 bankruptcy generally gives you the option to discharge more tax debts than Chapter 7. It is also important to remember that there are many different types of taxes, including federal, state, property, sales and more. However, whether you are filing Chapter 7 or Chapter 13, you can usually discharge tax debts if you meet the following standards:

  • Your back taxes are at least three years overdue.
  • You filed the returns for the debt two or more years ago.
  • The assessment for those taxes happened at least 240 days before filing.
  • You did not commit tax evasion or fraud.

Even if your debt meets all of these standards, there is still a possibility that you will not be able to discharge all of your tax debts. If that is the case, you can potentially create a tax payment plan instead. This would give you the opportunity to repay your taxes, but at a lower interest rate than you would otherwise be charged. In some cases, an experienced attorney can even help you reduce penalties from the IRS.

Carrying tax debt can be extremely difficult. In some cases, the IRS might even bring foreclosure action as an effort to collect back taxes. Instead of walking around plagued constant fear and uncertainty, you can take action to seek tax debt relief. We are proud of the guidance we have provided to countless Florida residents in similar situations.

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