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 is quite
common during a period of financial hardship. Sadly, the state and IRS
can be a powerful creditor. 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 of tax debt relief.
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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
Tax 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 the 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.
