Find Out How Our Debt Settlement Attorney Can Help Now
Tax season has come and gone, but the feeling that your tax debt is going to catch up with you doesn’t go away so easily. It can be unsettling when you hear everyone else chatting about finishing their taxes and talking about their refunds, while you feel a sense of dread that some day you’ll have to take action to straighten out your situation.
If you skipped tax season this year, or if you haven’t paid your taxes in multiple years, trying to find a solution on your own can be challenging. You need a legal strategy to get debt relief and move on from this situation with a fresh start.
This is why Denver residents rely on attorney Michael Wink at The Wink Law Firm. With The Wink Law Firm’s help, you can settle your tax debt now and stop the past from hanging over your head.
Solutions for Unpaid Taxes from Our Debt Settlement Team
Depending on your particular circumstances, you have several options to settle your tax debt with our experienced Denver debt settlement lawyer.
When you meet Mchael Wink and his team at The Wink Law Firm for a free consultation, we will likely recommend one of these options, based on your particular tax situation. However, you can be certain that you won’t get a one-size-fits-all solution. The plan that we devise for you is always tailored to each individual client’s needs, so they can walk away from their tax debt feeling deep relief, not uncertainty. Your next step after working with our Denver debt settlement lawyer should always be financial freedom.
Here’s what to ask about when you meet with The Wink Law Firm:
Offer In Compromise
Is your tax debt less than three years old? If your debt is from taxes no earlier than 2021, the taxes could not be discharged in a bankruptcy filed in 2024. In such cases, you can submit an Offer in Compromise to the IRS for an amount they determine to be “reasonable collection potential (RCP).” Depending on your ability to pay the taxes, you may be required to pay little to nothing to the IRS to get out of tax debt. What’s more, if you owe state tax debt, Colorado will allow you to pay back the same percentage for the same tax year(s) that you negotiated with the IRS.
Discharge in Chapter 7 Bankruptcy
As an alternative to an offer in compromise, you can discharge your tax debt in bankruptcy. In order to discharge taxes in bankruptcy, your tax debt must be at least three years old for returns filed at least two years ago, the IRS hasn’t assessed your taxes in at least 240 days, you’ve never committed a tax-related crime (i.e., tax fraud or evasion), and the IRS hasn’t filed a substitute for return (SFR), which is a return filed on your behalf. Tax debt meeting these criteria can be discharged in Chapter 7 bankruptcy. If you owe taxes for some years that meet these criteria and some that do not, you will get out of some tax debt in Chapter 7 while still owing for the tax years which don’t meet the dischargeability requirements. If your income is above the threshold for Chapter 7, don’t forget to ask our team at your free consultation about strategies to file for Chapter 7 as a majority non-consumer debtor.
Discharge in Chapter 13 Bankruptcy
Your third alternative, Chapter 13 bankruptcy, will require you to pay into a Chapter 13 Plan for three-to-five-years. Taxes which have become due in the past three years, were assessed in the past 240 days, or are from certain business taxes (i.e., sales tax, payroll tax) are considered priority taxes which must be repaid in the Chapter 13 Plan. Income taxes which are from a return that was due more than 3 years ago and was assessed more than 240 days ago do not have to be repaid in Chapter 13 and will likely be subject to discharge at the end of your plan.
Because bankruptcy will have implications for other debt while an Offer in Compromise will only impact your taxes, your entire financial picture should be considered when deciding on the best way to resolve your taxes.
Free Consultations with Our Debt Settlement Lawyer Are Available Now
The Wink Law Firm has a great deal of legal expertise helping Denver residents find solutions for tax debt and all your financial difficulties. Whether you haven’t paid your taxes or you’re experiencing nearly any other situation where debt is making your life overwhelming and unmanageable, our Denver debt settlement attorney has your back.
If you’re ready to end the struggle and take care of taxes, bills, business loans, and more, we’re more than prepared to help. We have unique strategies at our disposal to change your circumstances for the better. Let’s get rid of your dread about tax season as a team.
Schedule a free consultation online today, or give us a call at (720) 523-0620.