Tax Lien Lawyers Serving Clients Throughout Warren County and Butler County
Bankruptcy is a potential solution to State and IRS tax problems, as well as real estate tax debt. At the law firm of Harold Jarnicki & Associates, our attorneys have more than 35 years of experience helping people like you overcome tax debt. We know all of the unique issues that can arise, such as the tax consequences that often occur when debt is forgiven by a creditor.
State and IRS Tax Debt
Tax debt is very tricky to deal with. Some types of taxes are dischargeable in bankruptcy, meaning they can be eliminated completely without anything paid back. Interest and penalties may also be dischargeable. Our experienced attorneys will find every available opportunity to help you overcome tax debt.
We want you to take the most effective approach. You may already be paying back the State or the IRS directly on a payment plan, but the IRS and State charge interest and penalties. You may end up paying back much more than you really owe. Just like credit cards, the IRS and the state make money off of charging you interest and late fees. The IRS may even garnish your paychecks or placed a levy on your property. Filing bankruptcy stops garnishment, wipes out some tax debt altogether and allows for a payment plan to pay back the taxes with no ongoing interest or late fees. It can also remove tax liens on your property. No matter what your tax situation is, our experience can benefit you.
There Are Consequences When Debt is Forgiven
In certain situations, a creditor may be willing to forgive a debt. For example, if your house is foreclosed on and is then sold for less than what you owed, the bank may not hold you accountable for the deficiency. This is known as a forgiveness of debt. However, having your debt forgiven is not as good as it sounds.
The IRS often views forgiven debt as personal income and they will tax you for it. Many people are caught by surprise when they get a huge claim from the IRS after having a debt forgiven or settled. Our attorneys are here to prevent this from happening to you. We encourage you to discuss your case with us before you take any steps to overcome your debt on your own. We will ensure that you take the right approach.
Contact Us For Your Free Initial Consultation
To discuss your case with one of our Cincinnati and Dayton bankruptcy attorneys, contact us today.
