Tax Debt Attorneys in Morristown
Resolving Tax Debt in Morris County and the Surrounding Area
Some types of debt (like student loans, alimony, and child support) are virtually untouchable through bankruptcy. Legal professionals often include tax debt in this category due to how complex and challenging it can be to discharge money you owe to the IRS. However, some situations allow you to include IRS debts in a bankruptcy filing. Before deciding how to tackle your back taxes, however, be sure to retain support from an attorney with years of experience in this area.
At Ast & Schmidt, P.C., our Morris County IRS debt lawyers have handled complicated tax debts for decades. We understand what the IRS needs to see before allowing you to pay less than what you owe. We also understand the level of stress you may be experiencing if the IRS is contacting you on a regular basis. As such, we offer free initial consultations, in which we can begin to evaluate your financial situation and discuss your debt relief options.
Would you like to learn more about how the nation's bankruptcy laws can help you in your time of need? Call (973) 363-2260 or contact us online to speak with our experienced tax debt lawyers in Morris County today.
Does Bankruptcy Clear Your IRS Debt?
Most tax debt cannot be wiped out in a bankruptcy. However, some tax debt does qualify for your bankruptcy discharge.
When deciding whether your IRS debt can be included in your bankruptcy, the court will consider:
- The type of tax you owe
- The age of your debt
- The type of bankruptcy you filed
- Whether or not you filed a tax return
Discharging Tax Debt in a Chapter 7 Bankruptcy
In Chapter 7 bankruptcy, the court will only discharge your IRS debts if you meet the following conditions:
- You filed legitimate tax returns for the tax years involved.
- Your debt is income tax and not penalties for tax fraud or unpaid payroll tax.
- The tax debt is 3 or more years old, and the IRS assessed the debt at least 240 days before you filed for bankruptcy.
- You did not commit willful tax evasion or tax fraud.
Bankruptcy and Federal Tax Liens
If you have been contacted by the IRS about unpaid taxes and are considering your debt-relief options, you will need to act quickly, even if you meet all of the above conditions. This situation requires particular urgency because the IRS can place a lien against your home or other assets, and it will remain in place even if bankruptcy discharges the tax debt. Unlike other creditors, the IRS can do this without taking you to court first.
If we assess your situation and determine that bankruptcy is your best option, we can guide you through every step of the process. Many people, however, will not be able to discharge tax debt through bankruptcy. If this is the case, you still have options. We may be able to help you file an Offer in Compromise, which could allow you to pay the IRS less than what you owe.
Our team of bankruptcy attorneys at Ast & Schmidt, P.C. can take the right actions to help you achieve relief from crushing debt. We promise you, there is a light at the end of the tunnel.