Bankruptcy and Taxes

Bankruptcy

Tucson Arizona Tax Debt Attorneys

If you are going through financial hardship, we know how difficult it may be to for you to pay income taxes on time. This is especially true if you have important bills to pay, such as housing expenses, child care or grocery bills.

At our offices in Tucson and Oro Valley, we assist our clients with questions about bankruptcy and how it affects tax penalties, interest, garnishment and levy actions.

We can clarify which debts are dischargeable under a Chapter 7 or Chapter 13 bankruptcy.
Call 520.885.1106 today for a free consultation regarding your tax debts.

Dischargeable Income Taxes

Most money owed to the government is non-dischargeable. But like all matters pertaining to the IRS, rules and court decisions pertaining to tax obligations and bankruptcy are complicated, and are best handled by a qualified tax debt attorney at the Vidrine Law Firm, PLC.

You may discharge federal income tax debts under a Chapter 7 or Chapter 13 bankruptcy if you are filing for individual bankruptcy (non-business) and you meet the following standards:

  • Your debt is from income tax
  • You filed a non-fraudulent and timely return with the government
  • Your tax debt is three years old or older
  • The taxes were assessed 240 or more days before filing for bankruptcy

Non-Dischargeable Tax Debts:

There are many types of non-dischargeable tax debts, including:

  • Excise tax
  • Estate tax
  • Gift tax
  • FICA
  • Fuel tax
  • Sales tax

Priority Tax Debts in Chapter 13 Bankruptcy

With Chapter 13 bankruptcy, you can pay non-dischargeable priority income taxes under the 3 to 5 year payment plan.

This includes federal income tax debts which are:

  • Less than three years old
  • Assessed within 240 days (8 months) of filing for bankruptcy

Tax Debt Relief at Vidrine Law Firm, PLC

A Tucson, AZ tax debt attorney at Vidrine Law Firm, PLC, can provide you with reliable legal advice to help you pay outstanding tax bills. Call today to see if bankruptcy can help you wipe out tax debt altogether, or make the payment of taxes easier through a Chapter 13 reorganization plan.

Our Tucson office number is 520.885.1106. Your initial consultation is free.

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