Taxes, Liens, Levies and Wage Garnishments
You may be able to wipe out your income tax liabilities if:
- Your taxes were due more than three years before you file for bankruptcy;
- Your tax returns were filed more than two years before filing your bankruptcy case;
- Your taxes were assessed more than 240 days before filing your case; and
- You did not commit tax evasion or fraud.
The calculation of when you can first file for bankruptcy and eliminate your tax liabilities can be complicated. Only an experienced bankruptcy lawyer or tax advisor should advise you on matters of tax and bankruptcy law.
If you cannot discharge your state or federal tax liabilities you should talk to us about filing an Offer in Compromise with the IRS. If the IRS accepts your Offer you will pay less than you owe. Or, you may file a Chapter 13 case and pay the IRS over a 60 month period.
If you file for bankruptcy soon after a levy was made on your bank account, your assets seized or wages garnished, you may be able to force the IRS to return your money, wages and assets to you. But you must act quickly.