When 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. 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.
Each new client is assigned a “Client Success Manager” as part of their team, to onboard them, and thereafter, to mentor and guide them throughout the handing of their case - from start to finish. We do all this in a “virtual” environment offering our client a positive remote experience by effectively reducing the need for face-to-face meetings, handwritten signatures and the shuffling of paperwork, files and documents. By combining various technological advancements, we can ensure that all professional staff assignments and client information/document requests are completed in a timely, efficient and effective manner.
In addition, we provide our clients with the ability to log into our client portal platform with 24/7 access to everything on demand and centrally located through two separate client access tools – Client Mobile Device Communicator and Client Connect Desktop Portal.
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.
Our Tax Dischargeability Analysis is the cornerstone of each bankruptcy filing and essential for the proper treatment of the tax claims to file the best type of bankruptcy at the most advantageous time. In each case, our Tax Dischargeability Analysts perform a comprehensive Tax Dischargeability Analysis where we review and analyze each tax claim and all events related to that tax claim. This allows us to achieve the best possible result by filing the most appropriate type of bankruptcy at the optimal time to eliminate all tax claims, penalties, and interest, along with all other dischargeable debt.
There are many tax firms that claim they offer the best solution for resolving your tax debt but then effectively limit your options because they do not possess the resources to offer you the correct solution. Hire us and see the difference experience makes - we are a tax law firm comprised of aggressive attorneys dedicated to delivering client satisfaction through innovative and strategic results.
The Government is the easiest to borrow from – you don’t even have to complete a loan application. However, later down the road, they can quickly become your most aggressive creditor. Let us help you defend yourself and your business.
Tax Workout Group can assist with other types of tax matters, including:
Don’t risk your reputation and financial well-being. We welcome your questions and want to understand your situation to help you move forward and get the correct legal tax representation. Since time is often critical to ensure the best result, contact us for a Free Tax Case Evaluation at (866) 282-9333. We will answer your questions and quickly advise you regarding the best possible way to resolve your tax claims. You may also simply fill out the form on this page and we will reach out to you to schedule the Tax Case Evaluation. We generally reply immediately or within a few hours on the same business day.
We help families and their businesses Nationally with their IRS and state government tax problems. All information is confidential.