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Tax Dept

Tax Debt in Richmond, VA

There’s a common misconception that everyday people struggling with tax debt are not able to get relief; however, if your financial health is suffering due to excessive debt, tax relief through bankruptcy may be an option. At the Agarwal Law Firm, we won’t let the government diminish the standard of living of our neighbors in Richmond, VA due to excessive taxation.

Benefits of Working with a Bankruptcy Attorney

The state and federal tax codes are complicated in a way that makes them seem impenetrable to people who are not professionals in this area. That’s why it’s crucial to work with an experienced bankruptcy attorney who understands the aggressive nature of IRS collections and how to navigate the court system. When tax debt becomes overly burdensome, these are the benefits of enlisting a bankruptcy lawyer:

Negotiate A Settlement

In many cases, the IRS may be open to settling the outstanding tax debt for a fraction of what you owe. Forceful legal representation often results in the IRS waiving interest and penalties to resolve the matter.

Wipe Out Tax Debt

If you meet the legal criteria for full, fair tax debt discharge through Virginia bankruptcy, you could owe nothing and get a clean financial slate.

It’s imperative that everyday people have the benefit of determined legal representation when facing the power of the IRS. The agency has the ability to clean out your bank accounts, seize property and garnish wages if it goes unchecked. It’s fundamentally unfair that people struggling to make ends meet should be at such a disadvantage.

Chapter 7 and 13 Bankruptcy in Richmond, VA

If you are struggling with excessive tax debt, don’t allow the IRS to push you around. At the Agarwal Law Firm, we have delivered tax debt relief solutions to everyday Virginians through Chapter 13 and Chapter 7 bankruptcy for more than 15 years. Call or contact our Richmond law firm and schedule a free bankruptcy consultation today.

Frequently Asked Questions

Can tax debt be included in Chapter 13?

The outcome of filing Chapter 13 bankruptcy with regards to tax debt is seemingly as complicated as the IRS code itself. Taxes are generally considered a “priority debt.” That basically means you may be obligated to pay them. A Chapter 13 filing often opens the door to a 3- to 5-year affordable repayment plan. On the other hand, certain taxes may be considered “non-priority debts.” Examples of non-priority obligations include those from tax returns that are at least three years old.

What tax debt is dischargeable?

Not all tax debts are dischargeable. Things such as payroll, employment and excise taxes are generally not dischargeable. Also, taxes from returns within the last three years are not generally dischargeable. That being said, many people are able to wipe out significant income tax liability as long as they have filed returns and not engaged in fraud.

Is there a statute of limitations on IRS debt?

The IRS generally has a ten-year window to go after people for outstanding tax debt. It’s important to understand that the clock starts ticking once the IRS has received your tax return or has substituted one of their own if you failed to file. The statute of limitation usually begins when you receive a tax bill.
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