Many taxpayers have the mistaken impression that making a “deal” with the IRS is an informal process. Unfortunately, it’s just the opposite. It’s a process governed by a number of laws and rules and also by how those laws/rules apply to the taxpayer’s situation. Once this is understood, it’s easier to understand
No one likes bankruptcy, except bankruptcy attorneys.
For most Americans, it remains a very negative process. In fact…many of our clients refuse to even consider bankruptcy during a first meeting.
I don’t blame them. It’s interesting however, how many of those who are initially so opposed, change their minds once they see the potential benefits.
Why is bankruptcy a mind
Faced with large tax debt and feeling hopeless? Take heart…if you are willing to create a “strategy” and combine it with some hard work and patience, there may be a real solution. The following are the most 5 common methods people use to deal with tax debt.
Congress limited the
Large credit card debt is bad enough with it’s high interest rates and payments that never end. Mix in some tax debt and you’ve really created a serious problem.
The primary reason the two debts together can be such a problem is that the IRS won’t typically agree to include the full amount of the minimum credit card payments or
Many of our clients have large IRS debt and some don’t qualify well to settle their debt in an IRS offer in compromise.
The truth is…most people with tax debt don’t. (Read more about IRS Offers in Compromise and how they work)
Most Taxpayers end up in a payment plan either based on time, or in one that uses their
MISCONCEPTIONS
The one we hear the most is that the bankruptcy code can’t help you deal with IRS Debt. The truth is:
YOU CAN DISCHARGE IRS TAX AND PENALTY USING BANKRUPTCY… IF YOUR SITUATION IS RIGHT
The law does require that income tax and other non-trust fund type tax debt be discharged as a personal obligation if it meets certain