QUESTION
How can I get rid of my back taxes and where do I start?
Asked on May 05th, 2015 on Taxation - Illinois
More details to this question:
I owe about 12 years of back taxes to the IRS. Will they be able to take my wages if I get a job again? Will it help if I file for bankruptcy or will they still have a way to make me pay? How can I stop the penalties and interest?
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
First, if you filed the returns then any taxes more than 10 years old are written off by the IRS (that's why the TV ads say "we can get a deal where you pay 5% of your back taxes" the IRS has already written off the old years). Second, taxes where you filed the returns more than 3 years ago are discharged in bankruptcy. So, if you filed bankruptcy you'd still have to pay 2012, 2013 and 2014 taxes but not the older ones. You could handle these through in bankruptcy court in a Chapter 13 or directly with the IRS in a Chapter 7. Many bankruptcy attorneys don't have a clue about taxes, go to an attorney who is also a CPA.
Answered on May 07th, 2015 at 4:16 AM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
You should most certainly see an attorney prior to filing a bankruptcy. Sometimes taxes are dischargeable, but more commonly they are not. There other ways to deal with past-due taxes which should be explored if that is your major debt.
Answered on May 05th, 2015 at 5:38 PM
The statute of limitations is typically 10 years after accurate complete returns are filed. If you have not filed the returns, the statute never begins to rub and you cannot bankrupt out of the taxes.
Answered on May 05th, 2015 at 5:31 PM
Taxation Law Attorney serving Glendale, CA
at
Irsfeld, Irsfeld & Younger LLP
Update Your Profile
Will they be able to take my wages if I get a job again? Yes, but only a portion Will it help if I file for bankruptcy or will they still have a way to make me pay? Taxes are not discharged in bankruptcy, so it won't help much. How can I stop the penalties and interest? Pay. Consider an installment agreement with the IRS. Have you filed the returns and owe, or have you simply not filed?
Answered on May 05th, 2015 at 5:11 PM
Chapter 7 Bankruptcy Attorney serving Lisle, IL
at
Mankus & Marchan, Ltd.
Update Your Profile
Contact a good tax lawyer.
Answered on May 05th, 2015 at 5:10 PM