Bankruptcy Taxes
If you owe money to the IRS, working with a bankruptcy attorney is essential to determine how to eliminate the debt. While taxes cannot continuously be discharged through bankruptcy, some exceptions exist.
Our experienced Massachusetts bankruptcy attorneys at Daigle Law Office can help you evaluate your owed taxes and determine the best way to pay off your back taxes.
What Are Back Taxes?
Back taxes are taxes you owe to the government but haven’t paid by the deadline. This can happen for a few reasons:
- Unpaid taxes: The most common scenario is simply neglecting to pay what you owe.
- Miscalculated taxes: You might have unintentionally underpaid your taxes due to an error on your tax return.
- Unfiled taxes: In some cases, you might need to file a tax return, which leads to accumulating tax debt.
Are Taxes Discharged in Bankruptcy?
Generally, tax debts are not dischargeable in a Chapter 7 or Chapter 13 bankruptcy. In Chapter 13, owed taxes are paid through the repayment plan.
There are times when taxes may be discharged during bankruptcy. If you owe personal taxes greater than three years old and have filed taxes for those years, you may be able to eliminate those tax debts by filing for bankruptcy. If you have not filed taxes for those years, you would have to file before the bankruptcy filing for them to be considered for discharge.
Why It’s Essential to Hire a Bankruptcy Attorney
If you owe back taxes, hiring an experienced bankruptcy attorney is crucial. A lawyer provides the following benefits:
- Understands the complexities of tax laws. Determining if and when taxes can be discharged in bankruptcy is incredibly tricky. You need an experienced bankruptcy attorney who knows the latest tax laws and the requirements to discharge debts.
- Negotiates with the IRS. You might need to work with the IRS when trying to discharge your tax debts. Your bankruptcy attorney can represent you in these negotiations to reach a favorable outcome.
- Builds a case to help you discharge your tax debt. A bankruptcy attorney can help you gather the necessary documents and build a successful case to discharge the owed taxes.
- Explores all of your options to get rid of your tax debt. This can include negotiating a payment installation plan with the IRS.
- Saves you time and money. An attorney can save you the time, money, and stress of dealing with the IRS or making large tax payments.
Why Hire Us to Handle Your Bankruptcy Taxes?
Daigle Law Office is experts at determining which tax debts are dischargeable and which are not. If you owe back taxes that are not dischargeable, the Daigle Law Office can negotiate a payment plan that best suits you.
Taxes are always complicated, mainly because you are dealing with the government. It is best to discuss your circumstances with an experienced bankruptcy lawyer at Daigle Law Office instead of trying to figure out the laws yourself.
To schedule a free consultation, please call Daigle Law Office today at 508-771-7444.
