Tax debt can be a parasite to your financial well-being, thus you want to deal with it carefully and quickly. Everyday people are faced with circumstances where they are not able to pay their state or federal income taxes. Perhaps a person is self-employed and earned more than originally planned. This happens regularly, and people get in a bind with the IRS. In the end, you can't hide from tax debt.
Tax debt is not like other debt. It is not an unsecured debt like a credit card, so it can't be treated as such. It is not a secured debt like a car loan, where the lender owns a piece of title in the car. Tax debt is a different breed of debt, but the bankruptcy code does provide a certain scenario where tax debt may be discharged
Though each case is different and should be analyzed in more detail, tax debt may be discharged if the following are true:
- The taxes in question are more than three years old
- You filed your tax return more than two years ago
- Your taxes were assessed not less than 210 days ago
- Your tax debt was not the result of fraud or a willful failure to file
So isn't this a slam dunk if these requirements are met? It's impossible to say, until the case goes before the bankruptcy judge. The important thing is that overwhelming tax debt does not have to control and ruin your life.
The debt relief and bankruptcy attorneys at William H Oliver Jr & Associates in New Jersey would be a great resource to consider. Do not allow tax debt to be a burden. Discuss your situation with an experienced attorney.