Business and Consumer Bankruptcy Lawyers — Based in Lansing, Michigan
When a “knock” on your door is coming from the Internal Revenue Service, your debt problems have become very serious. This agency has the power to make your life very difficult power they can and will use against you. The IRS may even try to seize your assets when the tax debt you owe is dischargeable through Bankruptcy.
If you have been contacted by the Internal Revenue Service — do not try to deal with this powerful agency all alone. For immediate assistance — contact our attorneys today.
In the Bankruptcy Divison at The Kronzek Firm, we help clients in the Lansing area and throughout Michigan deal with the Internal Revenue Service as part of the Bankruptcy process.
Non-dischargeable Tax Debt
If the taxes you owe are less than three years old, they cannot be discharged through Chapter 7, but they may be discharged under Chapter 13 Bankruptcy. Similarly, taxes may not be discharged in Chapter 7 if they are older than three years but you did not file tax returns in those years, but they may be discharged in Chapter 13 Bankruptcy. In Chapter 13 cases, taxes that are otherwise non-dischargeable in Chapter 7 Bankruptcy are considered a “priority debt” that are potentially dischargeable in chapter 13, and must be paid in full. BUT you do not have to pay interest and penalties going forward on that priority debt, saving potentially thousands of dollars on fees that might otherwise be imposed by the IRS or state revenue department. What Chapter 13 WILL do is effectively decrease the amount you owe by erasing future IRS penalties and interest from the equation.
Michigan Dischargeable Tax Debt
You can discharge your tax debt if:
The taxes you owe are at least three years old.
The tax return for those taxes was filed at least two years ago.
The tax assessment is at least 240 days old.
Your tax return was not fraudulent.
You are not guilty of tax evasion.