Can I formulate a payment plan with the IRS?
Payment Plan With the IRS
Many people do not realize that the Bankruptcy Laws are more powerful than even the dreaded Internal Revenue Service (IRS). Yes, we can use the Federal Bankruptcy Laws to force the IRS into payment plans. In some instances we can even WIPE OUT tax liability.
Can Bankruptcy Help With Your IRS Problem?
I have been a Chicago area Bankruptcy Lawyer since 1981. Over the years, many of my clients have been surprised to learn that we can use the Bankruptcy Laws to help them with their tax problems, besides their credit card debts and mortgage problems. Bankruptcy is very powerful. But you must file your tax returns. All returns. That is the first step that I recommend to all my new clients who come into the office and are afraid to even tell me that they have not filed their tax returns. I remember one fellow who had not filed in 10 years or so. You cannot wipe out your tax liability or formulate an IRS payment plan if the returns are not filed. It is also a crime not to file your returns. And the IRS likes you to file them voluntarily and not wait until they come knocking at your door with the tax police!
File Your Tax Returns
Many times, a client will come into my office and sheepishly admit they haven’t filed a tax return for a couple of years. I send them right down the block to the IRS Chicago office to file those returns immediately. We need to know how much you owe in order to fix the problem. The IRS will even help you file the returns so if you don’t have the money to afford an accountant or H & R Block, take advantage of the IRS offices and file those returns. Once I know how much you owe, and the type of taxes you owe, I can come up with a plan to protect you and your assets from the IRS collection methods. Experience matters. Make sure you choose an attorney that has many years of experience practicing bankruptcy law. Especially when it comes to the IRS. These are complicated issues.
How a Bankruptcy Lawyer Can Help
You want your bankruptcy lawyer to order your ‘Tax Transcripts’ and determine how the bankruptcy laws can help you in your particular financial situation. Is bankruptcy the appropriate vehicle? Or would an offer in compromise be the better option? Chapter 13 is a court supervised repayment plan. We use it to stop the levy of wages by IRS. We can use it to force the IRS into a five year repayment plan. Some of your tax liability may not even need to be paid in full. It depends on several factors: 1) when were the returns filed; 2) what type of tax; 3) has a lien been filed by the IRS; 4) do you own any real estate; Chapter 7 type bankruptcy can also be used against the Internal Revenue Service. If you have filed your returns, and enough time has passed, in many cases the entire tax liability can be wiped out. This also depends upon several factors: 1) when were the returns filed; 2) what type of tax liability; 3) has a lien been filed by the IRS; 4) do you own any real estate.The important thing to remember is that there is help out there, even for folks who owe thousands and thousands to the IRS! My advice is to stop hiding from the truth. Let’s look at it together and I am confident we can come up with a plan. We call it bankruptcy planning these days!
Lorraine M. GreenbergAttorney at Law
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