An Attorney For Discharging Taxes In Bankruptcy
At the Law Offices of Robert T. Leonard, we look at all possible options to help our clients achieve their goals. This means that in addition to appeals, offers in compromise and installment agreements, we also assess whether filing bankruptcy will discharge outstanding federal and state tax liabilities.
After you speak directly with attorney Rob Leonard during your initial consultation, you will have the information and trusted advice that you need to decide on the very best course of action for your tax situation. We will then put your plan in action, advocating on your behalf and protecting your interests at all times.
To get answers to some of the most frequently asked tax and bankruptcy questions, view our FAQ page.
Priority Tax Status
If your tax obligation is due fewer than three years from the date the return was due, it is considered a priority tax and cannot be discharged.
Many individual income tax liabilities that are three years or older from the due date of the return may be eligible for bankruptcy discharge if other timing rules are also satisfied. You need to know whether your taxes are dischargeable; if not now, then when.
Filing Tax Returns/Eligibility For Bankruptcy
The tax return must have been filed at least two years prior to the filing of the bankruptcy. It is quite common for a taxpayer to not even know if certain tax returns have been filed. Under all circumstances, it is vital that IRS transcripts be obtained and carefully reviewed to determine the dischargeability analysis.
Business Taxes In Bankruptcy
Keep in mind that if you are in business, any withholding taxes due from payroll for your employees are priority taxes and not eligible to be discharged in bankruptcy.
Tax Liens And Bankruptcy
It is important to ascertain if liens have been filed by the IRS or a state government agency. While the tax might be discharged if all of the timing rules are satisfied, the lien itself is not discharged; it survives and continues to attach to the pre-bankruptcy asset. It is therefore critical to consider the effect of the lien prior to filing bankruptcy as well as what other options are available to resolve the tax debt.
Get A Free Consultation With A Lawyer Who Handles Tax Debt Issues
Serving clients in Woodland Hills, Los Angeles and the San Fernando Valley, as well as in other parts of California and across the country, we can be contacted at 818-485-2115. You may also contact us online. We offer initial consultations free of charge.