Torrance IRS Tax Debt Lawyer
Dealing with tax debt can be a daunting and stressful experience. The Internal Revenue Service (IRS) is a formidable agency with extensive resources and a firm commitment to collecting taxes owed. If you find yourself facing tax debt, it’s crucial to understand you are not alone, and there are legal options available to help you navigate this challenging situation.
At Wadhwani & Shanfeld, our team of experienced tax debt lawyers is dedicated to providing personalized guidance and effective solutions. We understand the complex rules and regulations surrounding tax debt, and we leverage our expertise to explore every available avenue to help alleviate your financial burden. Whether it is through a bankruptcy filing, negotiating an offer in compromise, or exploring other viable options, our Torrance IRS tax debt lawyer will work tirelessly to pursue the best course of action tailored to your unique circumstances.
Using Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a valuable tool that can provide relief from overwhelming unsecured debts, allowing you to start fresh financially. While tax debts are considered unsecured, they fall into a special category known as priority debts, which are generally not dischargeable through Chapter 7 bankruptcy.
However, there are specific circumstances where federal income tax debts can be eliminated through Chapter 7. For this to be possible, the following conditions must be met:
- The tax return in question has a filing deadline that is more than three years old.
- The related tax return was filed at least two years ago.
- It has been 240 days or more since the tax was assessed by the IRS.
- There is no evidence of fraud or intentional tax evasion associated with the tax return.
If these criteria are satisfied, the federal income tax debt may be eligible for discharge through Chapter 7 bankruptcy. This can provide significant relief and a fresh start for individuals struggling with tax debt.
It is important to note that Chapter 13 bankruptcy also offers an alternative approach to addressing tax debt. Through a Chapter 13 repayment plan, individuals can consolidate their tax debts and pay them off affordably over a three or five-year period without having to worry about aggressive collection actions from the IRS.
Handling Tax Debt Through an Offer in Compromise
An offer in compromise is a powerful tool that allows individuals to negotiate with the Internal Revenue Service (IRS) or the California Franchise Tax Board (FTB) to settle their tax debts for less than the full amount owed. This process effectively provides a fresh start by resolving outstanding tax liabilities at a reduced cost.
During the offer in compromise negotiation process, the IRS or FTB suspends debt collection, providing much-needed relief from actions such as wage garnishments, tax liens, or bank account levies. This breathing room allows individuals to focus on reaching a favorable settlement.
Let Us Help You
Let the experienced Torrance IRS tax debt lawyer at Wadhwani & Shanfeld get you help. Call now to talk to our legal team and get the help you need.
