Rancho Cucamonga IRS Tax Debt Lawyer
With nearly 100,000 employees, the Internal Revenue Service is one of the most powerful government agencies. Everyone feels a sense of dread whenever they receive a piece of mail from the IRS. Chances are good that there’s nothing but bad news inside the envelope.
Rancho Cucamonga residents who can’t pay taxes face the prospect of liens placed on their home, levied bank accounts, and wage garnishment. Tax collection is often public as well, with anyone being able to find out if the IRS has placed a lien on your property. What can you do?
Contact Wadhwani & Shanfeld today to speak with a Rancho Cucamonga IRS tax debt lawyer. We can review your options for managing your federal tax debt. Two options are filing bankruptcy or making an offer in compromise. Thousands of people get rid of tax debts this way, and either of these solutions might work for you.
Discharging Tax Debt with a Chapter 7 Bankruptcy
Some taxpayers can eliminate their IRS tax debt by filing for Chapter 7 bankruptcy. This option eliminates many unsecured debts, like credit cards and personal loans, but not family law obligations like alimony or child support.
Certain federal income tax debts are dischargeable in bankruptcy. That’s the good news. However, your debt must meet the following conditions:
- The tax debt relates to a return that you should have filed at least three years ago
- You actually filed the relevant return at least 2 years ago
- At least 240 days have passed since the IRS assessed the tax
- You did not commit fraud in your tax return
Another bankruptcy option is Chapter 13. You can include the IRS tax debt in your repayment plan, which means you can pay it off over 3-5 years. But Chapter 7 is faster, if you qualify, so most clients pick this option.
Making an Offer in Compromise
We can also negotiate on your behalf with the IRS or even the state’s Tax Board. The goal is to get them to accept less than the full amount of what you owe. They agree to write off the rest, and you won’t have to worry about the debt.
The IRS is not obligated to accept an offer in compromise. You also must meet certain eligibility requirements, such as:
- You aren’t in bankruptcy proceedings;
- You filed all required tax returns;
- You made all estimated payments;
- You have an extension for the current year.
To succeed, we typically need to prove that you can’t pay the debt. For example, you might have lost your job or become disabled. Another option is to cast doubt on the validity of the debt, but this is rare for most consumers.
Our Tax Debt Lawyers are Standing By
Uncle Sam has many tools for collecting unpaid tax debt. Your best bet is not to wait around for your wages to be garnished or a lien placed on your home. Instead, contact Wadhwani & Shanfeld to speak with a Rancho Cucamonga IRS tax debt lawyer about your case.
