Unpaid tax debts can make a difficult financial situation much worse. Interest and penalties can increase your total indebtedness every year. The IRS can place a lien on your home without a court judgment. In certain circumstances, you may even end up facing criminal charges. Fortunately, in many cases, the bankruptcy laws can provide relief to taxpayers who are in over their heads.
At the Law Office of Stephen H. Swift, P.C., we are highly knowledgeable about this complex area of the law. In your case, we may be able to eliminate or reduce your unpaid taxes — giving you the breathing room you need to rebuild your financial life.
In a Chapter 7 or Chapter 13 bankruptcy, tax debts more than three years old can be discharged. At the Law Office of Stephen H. Swift, P.C., we have helped hundreds of clients discharge tax debts through the bankruptcy process. There are some quirks in the law regarding cut-off dates and the look-back period for the discharge of unpaid taxes. Before you take any actions to obtain debt relief, you should consult with our firm in order to protect your ability to obtain a discharge of your tax debt.
What about tax debts less than three years old? These can be reduced and made manageable through a Colorado Chapter 13 bankruptcy. Consider the effect of interest and penalties on unpaid taxes — these can increase your total tax debt by 28% each year. By filing for Chapter 13, interest and penalties stop accumulating. The existing penalties and interest are then consolidated into a payment plan. Over a three to five year period, you can eliminate your remaining taxes (including interest and penalties) through a manageable monthly payment plan.
Our firm may be able to take other steps to reduce your taxes. Stephen Swift is an experienced bankruptcy litigation attorney who has successfully sued the IRS to reduce the tax debts of clients in a number of instances. Our firm can also obtain reductions in remaining tax debts through an offer-in-compromise negotiation with the IRS.
Law Office of Stephen H. Swift, P.C.
733 E. Costilla Street, Suite A & B
Colorado Springs, CO 80903