Burbank and Greater Los Angeles-Area Debt Discharge Attorney
Many people believe that back taxes cannot be discharged in Chapter 7 bankruptcy. This is not strictly true; tax debt that meets certain criteria can be discharged. At my California law firm, I help people who owe back taxes to the Internal Revenue Service or the California Department of Revenue. I am attorney Jonathan Leventhal and I focus on bankruptcy law, advising clients about their options when they have a tax debt.
Call a Los Angeles-area lawyer at the Leventhal Law Group, P.C. at 818-456-0397.
Criteria for Discharging Tax Debt
To be eligible to discharge a federal or state tax debt, a debtor must meet the following criteria:
- The tax debt must be for a tax year that is at least three years before filing the bankruptcy petition
- The tax return for the debt must have been filed at least two years before filing bankruptcy. For example, if you never filed the return, the tax is not dischargeable.
- The tax was assessed at least 240 days before filing bankruptcy
- The tax return was not fraudulent
I determine whether clients are eligible to discharge state or federal tax debts through bankruptcy. If you are eligible for a Chapter 7 bankruptcy as determined by the means test, I will help you accomplish the discharge of your debt. If you need to file a Chapter 13 bankruptcy, I will help you develop a repayment plan that includes at least some of the tax debt; tax debts older than three years may not have to be repaid. Either way, you can address the issue of tax debt by filing bankruptcy.
IRS Liens
Even if you discharge old tax liabilities through bankruptcy, the IRS does not automatically remove liens on your property. I know the different ways to remove a tax lien, including simply letting the lien expire (it takes 10 years), reaching an agreement with the IRS (offer in compromise) or determining that the IRS made a mistake. IRS errors can include:
- Never recording the lien
- Not recording the lien until you filed bankruptcy
- Recording the lien in the wrong county or against the wrong property
I may be able to challenge the lien on grounds such as these after determining whether you meet the criteria.
Contact a Woodland Hills Tax Debt Attorney for More Information
Call 888-324-9623 toll free to schedule a free initial consultation. You will always speak with me, not a paralegal.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
