IRS DEBT

ELIMINATE IRS DEBT

Failure to maintain your taxes current with the IRS or Department of Revenue (PA) can create a mountain of liability that is difficult to manage. Year after year, principal, interest and penalties grow. Eventually, IRS and Department of Revenue will file liens against your assets, making it even harder to resolve on your own.

It is important that you speak to a bankruptcy lawyer with experience in this area of law so that you can understand your options to best deal with the IRS and Department of Revenue. In many cases, Chapter 13 bankruptcy is an ideal way to manage debt owed to the IRS and Department of Revenue.

CHAPTER 13 BANKRUPTCY AND TAX DEBT

While the IRS and Department of Revenue do offer some options to repay tax liability, very often Chapter 13 bankruptcy provides the best way to resolve tax issues. A Chapter 13 bankruptcy will force the IRS and Department of Revenue into a five year payment plan. Depending on the circumstances, some or all of the tax debt could be discharged without having to pay.

The amount that is required to be paid through the bankruptcy plan depends upon varying factors including your income, expenses, assets and nature of the taxes owed. Also, unlike when dealing with the IRS or Department of Revenue directly, the amount that is required to be repaid is without ongoing interest and penalties. As a result, Chapter 13 bankruptcy is often an effective way of resolving debt owed to the IRS and Department of Revenue.

NEGOTIATING WITH THE IRS AND DEPARTMENT OF REVENUE

The IRS and Department of Revenue offer payment plans (installment agreements) which typically work best with small amounts of tax debt. By making application directly to the IRS or Department of Revenue, an agreement can be negotiated to repay the liability directly to the IRS or Department of Revenue. Very often, these types of agreements are required to be paid over a relatively short period of time, creating a high monthly payment. The IRS also offers longer term agreements if you qualify. These types of agreements can be costly because, in addition to repaying the principal debt, ongoing penalties and interest are required to be paid. This is one reason why bankruptcy often is a better way to resolve debt owed to the IRS and Department of Revenue.

The IRS and Department of Revenue also have a process to submit an application for an Offer in Compromise. With an Offer in Compromise, the applicant submits a proposed settlement to the IRS to resolve all debt owed through a lump sum payment or payment arrangement for less than the full amount owed. Applications for these types of offers require full disclosure of assets and income. Traditionally, they can be costly to file with a smaller chance of acceptance.

RESOLVE IRS DEBT NOW

Contact the Law Offices of Michael Schwartz for a free consultation to discuss your options and discover the best way to resolve your debt with the IRS or PA Department of Revenue. Make Michael Schwartz your bankruptcy lawyer near me!