Bankruptcy and Tax Lawyers in Maui
All You Need to Know About Income Taxes and Bankruptcy
Sometimes, taxes are dischargeable, and sometimes, not dischargeable in bankruptcy. We know that discharge ability relies on a number of factors. Many couples and individuals file for bankruptcy with our law firm for various reasons. Some people found themselves facing unmanageable debt from credit cards or medical bills, others ended up losing their jobs and ultimately had to rely on credit cards in order to survive. You can find a solution to these problems with our tax debt relief.
Past due state and IRS income and general excise (GE) tax debt are quite common during a period of financial hardship. Sadly, the state and IRS can be powerful creditors. Our Maui bankruptcy and income tax attorneys provide Chapter 7 bankruptcy, Chapter 13 bankruptcy, and tax resolution services to help people experiencing past due tax problems. So, if you are one of those people going through these difficult financial problems, then all you need to do is contact us. We have a team of experts who can help you get rid of tax debts with ease and with the right guidance on tax debt relief.
Important Things You Need to Know About Tax Debt Relief
You may see many mainland law firms and online providers giving you hope of eliminating tax debts. However, it is not as straightforward as it seems or sounds. You need to get the right advice, and in person, instead of from some long-distance outfit. Sadly, most tax debts can’t be resolved without the right map through the minefield. In fact, you will continue to owe your recent tax debt (3 years old) at the completion of Chapter 7 bankruptcy, or you will need to repay these debts in full under the Chapter 13 bankruptcy repayment plan.
However, you don’t need to worry, because we got your back when it comes to getting rid of old or recent tax debt. We completely understand what you are going through, and that’s why you don’t need to feel embarrassed about your current financial condition. We can tell you the best solution to address your past due state and IRS income tax or general excise tax.
When You Can Wipe Out a Tax Debt
You can discharge debts for income and/or general excise taxes under Chapter 7 and Chapter 13 bankruptcy only if you are able to meet all the following conditions:
Tax is Income Tax or General Excise Tax
Taxes other than income or general excise tax, such as fraud penalties and payroll taxes, can’t be wiped out in bankruptcy. So, if you want to get rid of income or general excise tax, then there are possibilities for you to become debt-free.
You Didn’t Commit Willful or Fraud Evasion
If you filed a deceitful tax return or willfully tried to avoid paying taxes, like using a wrong Social Security number on your tax return, then bankruptcy cannot help you at all.
The Debt is at Least 3 Years Old
In order to get rid of tax debt, your tax return needs to have been due at least 3 years before you file for bankruptcy.
You Filed a Tax Return
You’d need to file a tax return for the debt you want to wipe out at least 2 years before filing the case.
You Must Qualify For the 240-Day Rule
The income tax debt needs to be assessed by the taxing entity at least 240 days before filing for bankruptcy.
To learn more about the requirements for getting rid of income tax and general excise tax debt, our seasoned bankruptcy lawyers have over 30 years of experience in this area. Our highly experienced attorneys will explain the whole process to you and provide the best solution for your case.
Ignoring Delinquent Tax Notices is a Big Mistake!
If you are going through back tax problems, then one of the biggest mistakes you could ever make is to ignore the state and IRS notices. Keep in mind that if you get any notice from a taxing entity, then you must speak to a qualified lawyer immediately. Maybe you still have time to file for bankruptcy, which can stop all collection procedures and ultimately protect you from bank levies, wage garnishments, and liens attaching to your property.
Get Rid of Income Tax Problems Without Filing for Bankruptcy with Tax Debt Relief!
Have you ever wondered what you will do if you don’t meet or fulfill the criteria for a tax discharge in bankruptcy? Don’t panic, because our bankruptcy law firm also provides alternative paths to alleviate the sting of back tax woes. We provide tax debt relief that can also help you to regain financial freedom.
We will negotiate with the state and IRS on your behalf to get the ultimate possible outcome. The state and IRS provide various direct intervention solutions to people who owe a remarkable amount of past taxes, which include:
- Penalty Abatement
- Offers in Compromise (OIC)
- Installment agreements
- Injured spouse relief
When it comes to solving tax problems, our bankruptcy law firm stands out among the crowd. It is all because we always stay up to date about the latest trends and developments. You know that “knowledge is power,” and that’s why many individuals facing tough tax problems come to us without a second thought.