Manage Bankruptcy’s Impact On Your Taxes
Filing and paying taxes is always a confusing and complicated process. Unfortunately, filing for bankruptcy can further complicate your paperwork. In some cases, taxes owed to the IRS or the Washington Department of Revenue may have even contributed noticeably to the debt that led you to declare bankruptcy. It’s important to understand what state and federal tax laws require after a bankruptcy filing, in order to avoid underpaying and creating additional unpaid debt to the government.
The Law Office of David Carl Hill can help you navigate this process smoothly. While the cancellation of many forms of debt is considered a form of income, this rule generally does not apply to debts discharged in bankruptcy. For that reason, the IRS is an unusual creditor. But with the help of an experienced bankruptcy lawyer, you can convince state and federal tax officials to permit a payment plan through which you can pay your taxes in installments over time and sustainably manage your debt.
Avoid Scams And Understand Your Options
In addition to dealing with legitimate creditors and government agencies, you may also be contacted by scammers seeking to take advantage of the confusion that surrounds both bankruptcy and tax issues. It can be difficult to distinguish real debt relief programs from fraudulent ones, which often promise to eliminate tax debt for pennies on the dollar. If you have received such an offer, we can help you identify whether it is in your interest or not.
For further help managing tax debt during a bankruptcy, it may be in your interest to consolidate your debt through an “offer of compromise.” We can help you understand whether this makes sense in your case and then refer you to a trusted local colleague to carry out the consolidation itself.
Speak With An Attorney Today About Bankruptcy And Taxes
To learn more about how The Law Office of David Carl Hill can help you navigate bankruptcy in general, and its impact on your taxes in particular, come in for an initial consultation. To schedule an appointment, just call our office at 360-329-6223, or contact us online. From our office in Port Orchard, Washington, we serve clients throughout Kitsap County and beyond.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.