About Resolution of Tax Issues in Arizona

Arizona Bankruptcy Attorney

When you have a tax authority, whether state or federal, on your back demanding unpaid taxes, it can be extremely dangerous and stressful. Not only do these agencies have the right to access your bank accounts, they can create serious damage to your finances through their aggressive collection techniques.  The "kinder, gentler" IRS is now concerned with collecting as much of the outstanding tax debt in the country as possible, as the government bank accounts are in serious difficulty.

Hundreds of thousands of individuals and businesses in the country have been unable to pay their taxes, and are barely making it in the current economy. This will not stop the tax agencies from taking action to collect. How this is addressed is extremely important if you hope to avoid severe financial repercussions. An Arizona bankruptcy lawyer from Price Law Group can assist you in determining how to resolve the matter through the application of federal bankruptcy law.

How Does Bankruptcy Affect Tax Debt?

There are certain taxes that cannot be discharged through filing bankruptcy. Your particular case should be evaluated at once by our legal team to determine how to address the tax issue and avoid the problems that are inevitable if not addressed. You can have your wages garnished, tax levies filed against you and your bank accounts swept when you don't take action to ensure the matter is resolved.

When filing Chapter 13 bankruptcy, the outstanding tax debt will usually be included in a payment plan that you will have 3 - 5 years to pay.  This is in one payment, that you can afford, based upon your current financial situation. After the payment plan is completed, most individuals have paid only a portion of all their outstanding debt, but the obligation is discharged at completion.

In filing Chapter 7 bankruptcy, it is possible that the majority of your past tax debt will be discharged.  Taxes within the past 3 years may still be owed, but negotiating the amount is still possible, and you will likely not be required to pay the punishing interest and penalties that are in the debt. Each case should be evaluated to help you make an informed decision about how to resolve tax matters.  We can help.

Contact an Arizona Bankruptcy Lawyer to discuss tax issues and how to resolve them through bankruptcy or other alternatives.