Back Taxes
You can eliminate debts for federal income taxes in Chapter 7 bankruptcy only under very specific circumstances. For instance, the income taxes you owe must be for a tax year that is more than three years prior to the filing of the bankruptcy case. In addition, the IRS or the state must have assessed the tax debt at least 8 months before the filing of the bankruptcy case. The tax return that was filed must not have been fraudulent, and you must not have engaged in activity that would be considered willful attempts to defeat or evade the tax.
Another option besides bankruptcy is an Offer in Compromise, which is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax debt. The IRS has the authority to settle your federal tax liabilities by accepting less than full payment.
IRS agents will take advantage of a taxpayer who is not familiar with tax law or IRS collection procedures. If you have been targeted by the IRS for collection, call Lee Legal now at (202) 448-5136.