About Tax Workout Group

We are the only bankruptcy firm in Hilliard focused on resolving tax claims using the bankruptcy process. Our clients hire us to ensure that they eliminate or otherwise reduce their tax claim(s) to the greatest extent possible. There are many bankruptcy lawyers in Hilliard, but we are the only Hilliard IRS Bankruptcy Law Firm law firm headed by tax lawyers. We do what matters most – focus on eliminating tax debt in bankruptcy – plain and simple! While most other IRS Bankruptcy Law Firm law firms focus on bankruptcy and deal with the tax claims as an after-thought, we don’t. We deal with the IRS and state taxing agencies in every one of our tax bankruptcy cases.

A tax-motivated bankruptcy case is an effective weapon not only for eliminating IRS tax debt, but it can likewise discharge or eliminate state tax debt, medical bills, credit card bills, and most other debt.

A “tax motivated” bankruptcy filing is one which includes tax debt along with related interest and penalties. The tax debt can be any type of tax - income, sales, payroll, employment, or excise taxes. Our tax bankruptcy attorneys analyze every tax claim and examine its attributes to strategically eliminate or reduce the tax debt along with all other debt.

When it comes to filing a tax-motivated bankruptcy case, “timing is everything.” So often, we see instances where the bankruptcy case was filed months, weeks or even days prematurely, and consequently, the client later discovers that they still owe substantial tax debt which could have been eliminated had they timed the bankruptcy case filing correctly. That won’t happen with us.

When Can Income Taxes Be Reduced or Eliminated?

"In the case of income taxes, once the tax claim was incurred (based on the later of the due date or the extended due date of the tax return) more than three (3) years before the bankruptcy filing date and assessed more than 240 days beforehand, there is a strong likelihood that the tax is dischargeable in either a Chapter 7, 13 or 11 bankruptcy filing. However, this assumes that you filed a tax return (before the IRS has filed one for you) and if you filed late, more than two (2) years has passed since it was filed. In addition, these time periods may be impacted by a variety of events such as a prior bankruptcy, Offer-In-Compromise, an IRS CDP hearing (and related appeal), amended returns filings, audit adjustments and a few other events.

Note that even where a tax claim may not be fully dischargeable in Chapter 7, a Chapter 13 bankruptcy proceeding may allow you to eliminate the tax claim, or at the very least, satisfy it without the payment of penalties and interest.

In most cases, the type of tax involved is “income” taxes, but when a business is involved, there may be payroll, employment, sales, property, and excise taxes as well, all with a different set of rules that relate to the timing of events and transactions.

In each case we file, we prepare a detailed Tax Dischargeability Analysis report which is crucial to a determination regarding the timing and type of bankruptcy."