Oakland, California Tax Debt Attorney

Contrary to popular belief tax debt can be discharged in bankruptcy. However, only certain types of tax debt can be discharged under certain circumstances. If you owe the IRS back taxes and need tax debt help call The Law Offices of Melanie Tavare to schedule a free case evaluation. Our experienced IRS Tax Debt lawyer has been helping residents in and around the Oakland area for years with their tax debt problems.

Types of Tax Debt that you can Discharge in Bankruptcy

Federal and State Income Taxes: Many believe that income taxes can’t be discharged in bankruptcy, and in certain cases this may be true. For income taxes to be dischargeable in bankruptcy the following conditions must be met:

  • You had to have filed a tax return for the year in which you owe the tax debt.
  • The return must have been filed at least two years before the date you file bankruptcy.
  • The tax debt must be three or more years old.
  • The IRS or California Franchise Tax Board must not have assessed the tax debt within 240 days of you filing for bankruptcy. (It is important if you owe
  • back taxes to consult a lawyer before you are assessed.)
  • You have not attempted to evade paying your taxes.

Business Taxes: Some business taxes can be discharged in bankruptcy. The above rules will apply to business income tax debt as well. Payroll tax debt and other “trust fund” taxes can never be discharged in bankruptcy. If you owe business taxes and are considering bankruptcy consult a qualified lawyer.

Chapter 7 Bankruptcy and Tax Debt

If you owe the state or federal government taxes and if the above criteria have been met, you may be able to discharge your tax debt in bankruptcy. Depending on the other type of debt you owe, if any, a chapter 7 bankruptcy may be the easiest way to deal with your tax debt.

Chapter 13 Bankruptcy and Tax Debt

In certain situations, filing a chapter 13 bankruptcy case may be the best way to handle your tax debt. If taxes are considered a priority debt (e.g. recently filed income taxes) they must be paid in full through the chapter 13 plan. The major benefit of paying your taxes through bankruptcy is it will be at 0% interest, much better than the IRS can offer.

If your tax debt is dischargeable through bankruptcy (called unsecured tax debt) you may only have to pay a portion of the debt through the plan along with your other unsecured debt such as credit cards. The amount you pay back will depend on several factors including your income. Our attorney will be able to discuss the best option for you during your free consultation.

Contact a Tax Debt Relief Attorney Today!

If you are owe money to the IRS or to the state of California contact our tax Oakland debt relief lawyer today to find out if you can get rid of your tax debt by filing bankruptcy.

The Law Offices of Melanie Tavare is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.