Fighting the IRS over back taxes can really take its toll. Wage garnishments, tax liens, judgments can add stress and uncertainty to an already difficult situation. We at Allmand Law will help you deal with the problems your tax debt are causing. From an Offer in Compromise, to negotiating an IRS payment plan, our attorneys can help you settle your tax debts.
The IRS is not very forgiving when it comes to avoiding what is owed to the government, but there are some cases when a tax payer simply just does not have any means of paying their back taxes. In most cases the IRS will take a lien on any property that you own, confiscate it, and sell it in order to recoup some of what you owe.
To clear your IRS taxes in bankruptcy you must qualify to file under Chapter 7 Bankruptcy. It will mean that you have no means to pay back the government what you owe them. The IRS will carefully look into your history of income and bills and try to determine if you could have at one point paid your taxes. It is very rare that the IRS will allow your unpaid taxes to be written off without some type of payment. That said, there are some cases where a taxpayer has been able to claim Chapter 7 Bankruptcy and avoid paying any back taxes.
In most cases the tax payer will file Chapter 13 Bankruptcy which gives them a longer period of time to pay back any unpaid IRS back taxes. The government will make arrangements to help you pay back what you owe. Usually penalties and fees are dropped and you will only be charged just what you owe the government in tax dollars. In order to get the best deal and not have such a high interest rate you may want the services of a tax lawyer by your side to handle the negotiations with the IRS tax agent.