Bankruptcy Tax Defense
Discharge taxes are best defined as the process businesses and/or individuals go through who want to wipe out reduce their tax through bankruptcy. In some cases, bankruptcy may be used to discharge taxes and penalties from the IRS. You can also discharge taxes of older income nature in bankruptcy.
To discharge taxes through this process, two forms of bankruptcy taxes protection are typically used: Chapter 7 and Chapter 13. A Chapter 7 is a traditional "liquidating" bankruptcy. A Chapter 13 is for a small debtor with regular income who can make monthly payments against his or her debts.
Can I Eliminate or Discharge Taxes Debt through Bankruptcy?
The answer is yes. However, bankruptcy and taxes laws are always changing, so its always best to consult with a certified lawyer before attempting to discharge tax through this manner. The IRS, in fact, is now even allowed to take some limited steps to determine and assess tax debts despite the filing of a petition.
Among other things, their permitted actions include:
- Demanding any and all delinquent returns be filed
- Issuing summonses to determine the true tax liability
- Auditing taxpayer's returns
- Issuing a notice of deficiency
- Assessing uncontested liabilities
- Re-filing a notice of federal tax lien
Out of all the techniques for dealing with the IRS, using bankruptcy to discharge taxes is by far the most complex. Discharging taxes through bankruptcy, however, should not be approached without consulting specialists thoroughly familiar with the relevant issues. Bankruptcy is a tricky, unique tax situation and should be handled carefully.
The lawyers at TaxLawFirm.net can help you with your bankruptcy taxes issue.
Wipe Out Taxes though Bankruptcy Taxes Defense
Filing for bankruptcy can lead to discharging your tax debts as well as other debts. Doing so, can give you a new start. However, when it comes to discharging taxes through bankruptcy, it is extremely important to consult an experienced discharge tax bankruptcy attorney, as the rules concerning bankruptcy income taxes are quite complicated for determining if and when a taxpayer can be relieved of an income tax liabilities through a bankruptcy filing. Additionally, there may be other alternatives to discharge taxes, such as an “offer in compromise”, to explore rather than tax bankruptcy.
Please be aware, there is also proposed federal legislation that would make it more difficult to discharge taxes with bankruptcy filings. Some of these proposed changes would make it particular difficult to discharge tax debts through bankruptcy filings. So, if you are considering bankruptcy to discharge taxes on your end, or you believe that bankruptcy would be an effective method of relieving you your debt, consult with a bankruptcy specialist as soon as possible.
The Best Defense for Your Bankruptcy Income Taxes Case is TaxLawFirm.net.
For over two decades, the attorneys at TaxLawFirm.net have provided adept legal counsel to both individuals and businesses going through matters related to discharge taxes through bankruptcy. In addition to helping you with negotiation and representation, our tax attorneys are there to fight for your rights. The lawyers at TaxLawFirm.net are specialists in discharge taxes and bankruptcy-related matters.
Contact us to schedule a Tax Attorney consultation. Evening and weekend hours are available by appointment.