Arlington Bankruptcy Tax Attorney

Lawyers in Tarrant County Helping Clients Seek Relief From Tax Debt

There are many different types of debts that can cause difficulty for an individual or family. When money is owed to multiple creditors, a person may struggle to make ongoing payments while also managing their regular expenses. Tax debts can be especially difficult to deal with, since the IRS may take action in several ways to collect taxes that a person owes. The IRS may garnish their wages, seize funds in a bank account, intercept tax returns, or place a tax lien on real estate or other property.

At the Arlington law firm of Acker Warren P.C., we understand that if you have outstanding tax debt, you are probably considering many options, including bankruptcy. Clearing your tax debt through bankruptcy may be possible, but there are very specific rules and guidelines that apply when addressing your obligations to the government.

When Can Tax Debts Be Discharged Through Bankruptcy?

As with other types of debts, the collection of tax debts can be stopped by filing for bankruptcy. The automatic stay that goes into effect following a bankruptcy filing will prevent the IRS from implementing tax levies. However, before filing for bankruptcy, it is critical for you to determine whether the tax debts you owe are eligible to be discharged.

Tax debts can only be discharged if you have met certain requirements. Only state or federal income taxes can be discharged, so bankruptcy will not eliminate debts for payroll taxes, or other types of taxes. In addition, you will need to show that:

• The tax debts you owe were based on a tax return that was due at least three years before you filed for bankruptcy and that the tax return was filed on time or an extension was timely filed and the tax return was timely filed under the extension.
• You filed a tax return for the applicable tax debts at least two years before filing for bankruptcy.
• Your tax debts were assessed by the IRS, such as through a tax audit, at least 240 days before you filed for bankruptcy.
• You have filed all required tax returns for the tax years that ended within four years before filing for bankruptcy.
• Your tax returns did not include any type of tax fraud or tax evasion, such as willfully providing false information.

The attorneys at Acker Warren P.C. have more than 20 years of legal experience, and we know what is at stake when you are facing unpaid tax debt. We will work with you to analyze your situation and help you decide on the best course of action for your specific situation.

Chapter 13 Bankruptcy and Tax Debt

If a tax debt is dischargeable, it may be eliminated through Chapter 7 bankruptcy, and once the bankruptcy process is complete, you will no longer be required to pay the taxes owed or any related interest or penalties.

If your financial situation does not qualify for Chapter 7, you may include tax debts in a Chapter 13 bankruptcy repayment plan. Tax debts are considered priority debts, which means that they will be among the first debts to be paid in a Chapter 13 payment plan.

During the bankruptcy process, you must file all required tax returns and pay your current taxes. Failure to do so could result in your bankruptcy case being dismissed. You are also eligible to receive tax refunds while under bankruptcy protection, but any refunds may be directed toward paying down your debts.

Call 817-752-9033 for Tax Debt Help Today

For more information about Acker Warren P.C. and how we can help you address your outstanding tax debts, contact our office. Call 817-752-9033 to schedule a free consultation with one of the experienced bankruptcy lawyers at our firm today. We help individuals, families, and businesses in Arlington, Fort Worth, Wise, Parker, Tarrant County, Dallas County, Parker County, and the surrounding communities.