Tax Debt Lawyers in Knoxville
Solutions for Tax Debt Relief in East Tennessee
There is an ongoing myth that while bankruptcy can help people discharge certain types of debt, including such unsecured debts as medical bills and credit card loans, it can do absolutely nothing when it comes to debts received from tax pressures. As a result, many people are led to despair when facing tax debts from the Internal Revenue Service (IRS), some of the most longstanding and harsh forms of debt.
The IRS, or other tax authorities, are known for being aggressive in continuously reminding or even harassing you about delinquent income taxes as well as property taxes. But know that there is still hope if you feel burdened by tax debt you’ve accumulated over the years.
You may be surprised to hear that our team of experienced attorneys at The Law Offices Of Mayer & Newton are knowledgeable and well-practiced in offering clients support for tax debts precisely through Chapter 13 bankruptcy. If you ask to speak with one of our tax debt relief attorneys in Knoxville, you can be sure that you will receive a comprehensive outline of all the ways you can still benefit from Chapter 13, all explained in clear terms that you can understand and apply – no confusing legalistic jargon here.
Call us today at (865) 328-7993 to feel the burden of tax debts lifted if you are a resident of Morristown, Knoxville, or Sevierville.
Can Tax Debt Be Discharged in Bankruptcy?
Bankruptcy can discharge federal and state tax debts if certain conditions are met:
- Only income tax debt and some property taxes can be discharged. Other taxes such as employment, payroll, sales, and penalties are not dischargeable.
- Tax debts at least 3 years or older are eligible. New debt within the past 2 years are not.
- You must have filed your tax returns correctly and on time. False returns or tax evasion can disqualify you from discharging your taxes in bankruptcy.
- The tax assessment must be at least 240 days old.
Consult a qualified attorney to learn more about whether your tax debts can be discharged or if you should seek other debt relief options.
How Bankruptcy Can Wipe Out Tax Debt
When it comes to collecting what is due for taxes, the IRS has enormous and extensive powers. The moment that you make a delinquent payment, you become subject to their severe measures of penalization.
The IRS is capable of seizing your property, enforcing garnishment of wages, or creating all types of levies on taxes. It is no wonder that people instantly feel dread when they receive a letter from the IRS. Fortunately, however, our knowledgeable lawyers are greatly experienced in aiding those who owe debts to receive numerous benefits from a timely, carefully managed application for Chapter 13.
Some of the ways that Chapter 13 bankruptcy can resolve your tax debt issues include:
- Immediately halting the capacity to enforce legal actions: Once you file for Chapter 13, you instantly get an “automatic stay”. This enforces the rule that no creditor, including from the IRS, can attempt to enforce you to give up your wages, property tax sales, or bank levies. This does not only forbid aggressive behavior, but creditor requests of any kind, via phone calls, emails, or personal confrontations.
- An extension to pay recent taxes over three to five years, instead of all at once: This not only gives you the relief of an extension to pay back your debt, but can often be maneuvered so that you do not have to pay high interest fees either.
- Certain past income taxes can be forgiven and eliminated: While most taxes cannot be discharged, debts for taxes that have been made at least three years previously can be completely erased.
Trustworthy Legal Support & Guidance in Hard Times
We all know that you cannot predict what will happen in life. Due to the unforeseen tragedy of COVID-19 and all of the negative impacts upon the economy, many citizens have lost their livelihood and incomes, and thus are struggling to pay taxes as well on account of terrible events far beyond their control. At The Law Offices Of Mayer & Newton, our passionate lawyers in Knoxville are determined to support you with our comprehensive tax debt services.
Board Certified Bankruptcy Attorneys
Our attorneys are among the most knowledgeable in East Tennessee and are Board Certified Bankruptcy attorneys.
$0 Down for Chapter 13
We charge zero legal fees to start a Chapter 13 case.
$0 Down for Chapter 7
We charge zero legal fees to retain our firm to represent you in a Chapter 7.
Affordable & Flexible
We offer free consultations and take online payments for your convenience.
Over 50,000 Cases Filed
We have successfully filed over 50,000 cases in the Eastern District of Tennessee.
Caring & Effective
We have experienced attorneys and well-trained staff to ensure your case is handled effectively and with care.