Using Bankruptcy to Resolve Tax Debts
When you own your own business or when taxes are not automatically deducted from your paycheck, it is easy to arrive at the end of the year and realize you owe the government money. Coming up with the extra thousands of dollars, however, can be challenging.
Unfortunately, once you fail to pay your taxes, the tax obligation begins accruing penalties and interest, and with time, the amount you owe can quickly grow. If you are behind on your taxes and are looking for a way to regain your financial stability, Parker & Associates, a Winchester bankruptcy and taxes attorney, can help. We have over 30 years of experience helping individuals use bankruptcy to discharge or restructure their tax debts.
Contact our office today to further discuss your specific bankruptcy and tax questions or concerns.
Massachusetts Tax Liability Attorney
When an individual files for relief under a Chapter 11 or Chapter 13 bankruptcy, a repayment plan can be used to pay off your tax debt, typically in three to five years. Unlike non-bankruptcy repayment plans, once you file bankruptcy, penalties and certain interest may stop accruing, so the amount you owe the taxing authority can be managed carefully and satisfied through a bankruptcy solution.
When we work with individuals to help them resolve their tax debts, we often work with an accountant to determine the most effective payment plan. Although many accountants offer the same service to individuals who are not filing bankruptcy, you will not receive the same benefits. Working directly with a payment plan with the taxing authority does not stop any interest or the penalties from accruing, so even after you work out a payment plan, you may still be responsible for additional payments.
Contact a Lawyer to Resolve Your Tax Debts
Learn more about satisfying or discharging tax debts and ways to prevent additional penalties or interest from accruing. Contact us online or call 781-218-3487 to schedule your free initial consultation.