Many of my Bankruptcy clients have tax debt. Most often Tax Debt is not dischargeable in Bankruptcy. However there are options that can help you reduce, resolve or repay your tax debt without wage garnishment, liens or levy’s on Property.
Available Options include
- Offers in Compromise – this allows you to pay a lesser amount, if the offer is accepted by the IRS. Statistically, less than 20% of offers are accepted.
- Not Currently Collectible – this provides relief for people who are currently unable to pay their taxes. While this is not a permanent solution per se, for those on fixed income, such as social security recipients, the effect of such an agreement can be a final solution. In addition, it will prevent the IRS from taking 25% of your social security payments.
- Installment agreement and Partial pay installment agreement – this allows for payment of the tax liability over time without seizures or garnishments.
- Innocent spouse relief – allows one spouse to receive his or her share of the tax return if the tax of levy is based on the actions of their spouse.
- Bankruptcy – some tax debts are dischargeable, others can be paid over time, while other debts are discharged.
- Other defenses such as the Statute of Limitations may provide a defense.