Bankruptcy and the IRS


The biggest question asked by people in Illinois when they meet a bankruptcy attorney is if they can also claim their back taxes. When you file a Chapter 13 Bankruptcy you may repay any IRS tax amount owed through your Chapter 13 payment plan. This is why it is tremendously important to use a bankruptcy attorney to guide you through the process.

The IRS Payment Plan and Discharging Taxes in Bankruptcy

The IRS Payment Plan will enable you to get your taxes paid without a lot of penalties. In most cases it is always best to have the services of an experienced Chicago bankruptcy attorney who can help you with any issues that you have with the government.

Tax and bankruptcy laws permit people to repay their back taxes when they file for Chapter 13 Bankruptcy, and with the help of a bankruptcy attorney you can work out a good payment program. The best way to get IRS tax relief when you are filing for Chapter 13 Bankruptcy is by using the services of an experienced bankruptcy attorney. Your attorney can guide you to get the tax relief that you need.

Many people prefer to file Chapter 7 Bankruptcy, because this will wipe out most of the bills that you owe and let you start all over again with a clean slate. This is a great way to recover with a fresh look on life. In a Chapter 7 bankruptcy, income taxes may be discharged if they are at least three years old (the clock starts ticking from the date the taxes were due, not the date the returns were filed), the tax return in question must have been filed within the last two years, the IRS must have assessed the taxes at least 240 days before you file your bankruptcy, the income tax return cannot have been fraudulent, and you cannot be guilty of tax evation.

If you have IRS tax debt, you need to make sure that you consult with a reputable Chicago bankruptcy attorney to find out your options.