Solving Tax Debt Problems With Bankruptcy

It’s easy to fall behind when you owe a significant amount of money to the Internal Revenue Service (IRS). Fortunately, it is possible to gain control over — or even eliminate — tax debts through bankruptcy. In Shelbyville and Frankfort, Kentucky, the attorneys at Robinson Salyers, PLLC, take action to help people with tax debts start fresh.

Frankfort Tax Insolvency Attorney

As a general rule, IRS individual tax obligations are dischargeable if they are older than three years and you filed your returns more than two years ago. There are some exceptions to this rule: If the IRS takes the position that you have defrauded it, then you have to address that allegation within bankruptcy.

If the tax debt is less than three years old, you may be able to address it in a Chapter 13 proceeding. The bankruptcy court considers tax debts priority claims, which means you would need to pay your tax debt before paying off other debts such as credit card debts, car loans and other types of debt.

Taxes And Government Overpayments

If the government says it paid you too much in Social Security and unemployment benefits, and that you owe money, it is possible to discharge these debts in bankruptcy. In some cases, the Social Security Administration will withhold money in the amount that it claims you were overpaid. Our lawyers can take steps to stop these withholdings.

Contact Us For Help When The IRS Calls

When you have unpaid IRS taxes, it is natural to feel a sense of anxiety. Our Shelbyville tax debt and bankruptcy attorneys at Robinson Salyers, PLLC, are prepared to help. To schedule a consultation, call our office at 502-257-5417 or send an email.