IRS Debt

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. 

Why Choose Ast & Schmidt, P.C.?

  • Personalized Services Tailored for You
  • Over 25 Years of Bankruptcy Experience
  • Free Initial Consultations
  • Available After Hours by Appointment

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

Chapter 11 and Chapter 13 bankruptcies involve debt restructuring. Therefore, Chapter 7 is generally the only option you may have to cancel debt you owe to the IRS.

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.
  • "..Thank you Ast and Schmidt for all that you do!"
    I have personally used Ast & Schmidt and have recommended them to friends and family members as well. Robert and Antoinette are always responsive, timely, and available to go over any questions or concerns I might have in what could be an otherwise stressful process. I can confidently say that I 100 percent trust Robert's guidance and quality of work. He and the staff go above and beyond to make sure I understand all of my options as well as the process from beginning to end. Antoinette always makes me feel comfortable when I call with questions and Robert's guidance and services have truly been a blessing in helping me transition out of some rough times so that I could move forward in my personal and professional endeavors. I can not recommend this firm highly enough. You will be well taken care of. Thank you Ast and Schmidt for all that you do!
    - Rena Z.
  • "Throughout our experience with Ast & Schmidt, my husband and I were treated with the utmost respect and compassion."
    Throughout our experience with Ast & Schmidt, my husband and I were treated with the utmost respect and compassion. Whenever there was a question (even during COVID), Rob Schmidt was most accessible and helpful to us during this difficult time. We would recommend them to anybody who is undergoing financial challenges. Everyone associated with the company is attentive and a pleasure to deal with, even regarding the most trivial matters. Certainly, when addressing the complicated issues that arise during legal proceedings, Ast & Schmidt provides seamless and impeccable attention to every detail.
    - Iris G.

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.

Finding the Right Solution 
for You

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.

For fully personalized, high-powered legal support, call (973) 363-2260 to get in touch with our Morristown tax debt lawyers at Ast & Schmidt, P.C. today.

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