Negotiating Past Due Taxes
Protect Property, Avoid Garnishments
Attorney Paul Strouse - Reduce Your Tax Debt!

Negotiating Past Due Taxes

The tax man can be one of the most intimidating people one has to deal with. As you know, taxes come in a variety of ways; i.e. property, income, sales, and others. And, there are a number of governments collecting taxes from you: state, local and federal. When a person faces taxes that he or she cannot afford to pay, good legal advice can save the day.

Besides the different types of taxes and the different taxing authorities, there are two other classes which are priority or non-priority. Federal non-priority taxes are generally non-secured income taxes. The non-priority taxes are the best candidates to get some or complete discharge through Chatper 7 bankruptcy.

The unsecured nature of federal income taxes does not immediately make them dischargeable. There are a number of qualifiers that must be passed before consideration is made to reduce or discharge such a tax debt. A few of them are that the taxes must have been filed on time, have been assessed more than 240 days ago and must be more than three years old. The taxes owed must also not be due to a fraudulently filed tax return. In regards to the 240 days, this number could be affected if an "offer in compromise" has been filed on the debt or there has been another bankruptcy case has been filed within the 240 day period. In regards to the 3 year old return, this timeframe can been affected if an extension was filed for the return in which the debt was incurred.

Chapter 13 bankruptcy is another way to address a tax debt. Through chapter 13, a tax bill can be paid through monthly payments for up to a 60 month period. During negotiations relating to the tax debt, freezing any interest payments and also reducing the amount owed would be two main goals.