There is a process called an Offer in Compromise that affords you the opportunity to show the taxing authorities that even the liquidation value of your assets would not satisfy your tax liability.
The Law Office of Barry R. Levine has been successfully advising taxpayers as to the viability of compromising their tax liability for over thirty years. We do a liquidation analysis of your assets to determine the threshold amount of an acceptable offer and then analyze your allowable income and expenses to determine if you have a monthly surplus. Typically, an acceptable Offer in Compromise is an amount determined by i) the liquidation value of your assets at the time of making the offer and ii) your monthly surplus income, if any, calculated over a specific period of time.
It is possible, however, that your personal income taxes (not to be confused with “trust fund liability taxes” that cannot be discharged in bankruptcy) may be dischargeable in bankruptcy.
In a Chapter 7, you may be able to discharge your personal income tax liability. If it is found to be non-dischargeable, you may still be eligible for relief under Chapter 11 or Chapter 13. In those cases, a three to five year repayment plan may be proposed and approved by the Bankruptcy Court. Unlike repayment plans negotiated directly with the taxing authorities, once you file bankruptcy, penalties and, in some cases, interest stops accruing on your liability. Your total tax liability is fixed, with a monthly payment that has an end in sight.
At the Law Office of Barry R. Levine, we work with you and your accountant to ease the burden of your tax liability either through an Offer in Compromise or an appropriate bankruptcy filing.
The Law Office of Barry R. Levine – providing clear solutions for your financial confusion for over thirty years.