Tag Archives: tax liens

Tax Debts and Tax Liens

If you are interested in discharging tax debts in bankruptcy, The Sader Law Firm can help. There are certain rules that apply in order for that to happen. At a minimum, filing a petition for bankruptcy stops collection action during the pendency of the bankruptcy proceeding. Tax debts which are dischargeable If the following conditions are met, the tax debt, including penalties and interest, may be discharged at the end of the Chapter 7 Bankruptcy proceeding: The taxes are income taxes All outstanding tax returns have been filed You did not engage in any fraud or tax evasion The taxes you want discharged were originally due at least three years prior to your filing for bankruptcy The tax return for the debt you want discharged was filed at least two years prior to the bankruptcy filing date The IRS assessed the debt at least 240 days prior to the date…
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Need a Fresh Start with the IRS?

The IRS recently announced a new effort to help struggling taxpayers get a fresh start with major changes made to the lien process. The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens. (IR-2011-20). The changes to the IRS lien filing practices include: Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens. Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill. Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement. Creating easier access to Installment Agreements for more struggling small businesses. “We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” IRS…
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