Tax Relief Attorneys for IRS Troubles

How Bankruptcy Can Help IRS Troubles

At the Law Offices of Hindley & Henderson, our tax relief attorneys can show you how bankruptcy can help with many types of IRS troubles.

Can’t Pay Federal and State Taxes?

If you owe state or federal IRS taxes that you cannot pay, filing bankruptcy may help you resolve such taxes, before they become a problem.

Owe Back Taxes? 

You can often discharge back federal, state, and local income taxes in bankruptcy, including penalties and interest.  Whether tax years are eligible to be discharged depends on how old the tax year in question is, whether a return was filed, and whether there were any assessments by the taxing entity after filing of the return.  Sometimes the IRS will file a substitute return for the tax payer if the tax payer has not filed a return themselves.  In the event a substitute return has been filed, discharge is less likely.   Taxes that have been due and owing for over 3 years are more easily discharged.  Taxes that are not old enough to be discharged often times will still be discharged through a Chapter 13 payment plan.

Delayed Refund? 

Tax refunds, if exemptible, can be received while in bankruptcy. However a tax entity may claim a right to set off the refund against taxes owed from previous years. If you believe your refund has been delayed or set off against your tax debts you can check on its status by going to our Where’s My Refund tool on the IRS’ website or by contacting the IRS’ Centralized Insolvency Operations Unit at 1-800-973-0424.

Tax Liens on Personal Property?

If your taxes qualify for personal discharge in a Chapter 7 bankruptcy case, sometimes your property may not be released.  Bankruptcy will not release a previously recorded tax lien.  Personal and real property can be affected.  This means you’ll have to pay some amount towards the tax debt to release the lien, usually best performed in a Chapter 13 payment plan.  Alternatively, a sale of the property subject to such lien may be the preferred method.  A Chapter 7 Trustee has the power to sell free and clear of a tax lien, this important nuance cannot be overlooked.

One should save all letters and demands for payment from a tax entity.  Additionally, account transcripts can be obtained, free of charge, from the IRS and these transcripts will assist in determining your best options.  After we review the amounts owed and determine which years are involved we can advise you on the best course of action.

Stop Wage Garnishment

Filing bankruptcy creates an automatic stay against all creditors.  This automatic stay serves to stop wage garnishment, bank levy, repossession, or foreclosure without further order of the bankruptcy court.   Thus, in most instances, a bankruptcy filing will stop a wage garnishment or bank levy immediately! Learn more about Wage Garnishment.

Have Questions? Request a Free Consultation

At Hindley & Henderson, our bankruptcy lawyers are also trained tax relief attorneys who can help guide you smoothly through any IRS trouble you may have.  We have been helping clients understand the bankruptcy process for over 30 years and will work closely with you to explain how bankruptcy can help solve various IRS problems.  Our staff is friendly and informative and available to assist you on the phone, via email, or in person. You will receive prompt, personal service and we strive to help our clients feel less stressed about your financial situation and IRS troubles.

Many law offices do not have the support staff to answer the phone and emails quickly, but we have staff available Monday through Friday from 9 a.m. to 5 p.m. to assist you. We also have evening and weekend appointments and offer reasonable rates and payment plans.

The Law Office of Hindley & Henderson provides tax relief to clients with IRS troubles throughout the North Bay, SF Bay Area and Silicon Valley. We have a bankruptcy law office in Santa Rosa to serve Sonoma, Marin and Napa Counties, and a bankruptcy law office in San Francisco to serve the SF Bay Area.  We also can provide services for the San Jose, San Mateo and Silicon Valley.

Contact us today to schedule a free consultation with our tax relief attorneys and learn how filing bankruptcy can help you solve your IRS troubles.