Can you Discharge Tax Debt in Chapter 7? Yes. Tax debt which is over 3 years old can be discharged. Payroll Tax Debt from the operation of a business is not discharged. Sales Tax Debt from the operation of a business is not discharged. To properly determine with accuracy whether your tax debt is discharged in Chapter 7, you should order tax account transcripts for all years that you wish to discharge tax debt. You can order tax account transcripts at no cost at by clicking here.
At NLO Nelson Law Office, we can help you determine whether your tax debt is discharged. Do you have income tax debt that is 6 years old, but you had an offer in compromise or your filed your taxes late or you amended your taxes. Using specialized software and our experience we can determine with accuracy the optimized date to file your Chapter 7 bankruptcy to maximize your tax discharge.
Did you run a business that failed? Did the business owe sales tax? Has the State Sales Tax Authority assessed tax liability against your personally as the President of the Company or as a responsible person? If so, you may need help in paying this non-discharged tax liability back. Typically a Chapter 13 bankruptcy is good option for forcing a reasonable repayment plan as well as eliminating other types of debt to allow you more ability to repay this debt back.
Did you run a business and no properly pay your employees payroll tax? Payroll tax deducted from employees is the employees property held in trust by the employer as a fiduciary who is responsible for then paying these funds to the government as payroll tax. If the taxes are not paid, the President of the Company, Managing Member of the LLC or the Sole Proprietor of a business is held personally liable for this debt. Use a Chapter 13 to force a reasonable payment plan and reorganize and minimize your other debts.
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