I Need Answers For: Past Taxes Owed

Do you owe past due taxes? Are you struggling to meet monthly expenses and feel like you are drowning in debt? Concerned that the IRS will take steps to collect the taxes that you owe? These are all common issues that are faced by Americans every day. Whenever the IRS or other tax agencies are involved there should be reason for concern. Many Americans want to pay the taxes they owe, but if you do not have the available funds and there are no other resources available you may feel trapped but there are answers and assistance available.

Tax Garnishments Can Be Stopped Immediately By Filing For Bankruptcy Protection

If you owe back taxes to the federal government, state tax authority, or local tax agency and you have problems meeting all of your bills and expenses then bankruptcy may be able to help. Wage garnishments are a common tool used by the IRS, state, and local governments to collect any unpaid taxes, penalties, and interest assessed. A wage garnishment will make your financial situation even more difficult because your paycheck will be far less due to the garnishment order. As soon as you file for bankruptcy all wage garnishments and other collection activities are stopped immediately.

Once a creditor receives a notice of the bankruptcy filing the wage garnishment must stop right then. The type of taxes owed does not matter. This gives you some space and allows the bankruptcy court to determine whether a specific tax owed can be discharged or not. In the end the tax may still be owed, but you will be in control and will get the answers and assistance you need. Some tax debts can be wiped clean and eliminated while others may not be discharged in bankruptcy.

Bankruptcy Can Discharge Some Unpaid Tax Debts

Some types of past due taxes owed can be eliminated by the bankruptcy court while others cannot. The type of tax owed will play a part because withholding taxes are different from income taxes. Some income taxes can be discharged and eliminated completely, and these taxes are usually at least 3 years past due and meet certain other specific criteria. A common myth is that bankruptcy cannot get rid of old tax debt but this is not always true. There are 4 main rules that must be met for an unpaid tax debt to be discharged under the bankruptcy laws. An experienced and qualified bankruptcy attorney will understand these rules thoroughly.

The experienced bankruptcy attorneys with Richard West Law specialize in bankruptcy and debt relief law, that is all we do. We can determine whether unpaid taxes can be discharged or must be paid, and work with the tax authority on your behalf to get the best resolution possible in your case. We will also ensure that all of your other debts are eliminated whenever possible as well. This will give you the fresh financial start and brighter future that you want and need.

Every potential situation is different and unique, and the results achieved may vary from one case to another. We cannot guarantee a specific outcome in every case because of the complexity of the laws, but we will work tirelessly to provide the debt relief and answers that you need in your individual circumstances and situation.