Eliminate or Reduce Your Tax Debt

If you owe taxes that are more than three years old and your returns were filed on time, you may be able to eliminate that tax debt.  If the tax debt is more recent, you can pay if off with a manageable payment plan on your terms, not the terms that the IRS or Franchise Tax Board will dictate.  You may also be able to eliminate and/or reduce any accrued penalties.  

A bankruptcy filing will stop any garnishments for taxes owed but it is important you understand the difference in how tax debt is treated in a Chapter 7 and Chapter 13 case.  In a Chapter 7, any recent tax debt will still be owed at the end of the case.  In a Chapter 13, you can propose payments over a 3 to 5 year period of time to pay off any recent tax debt and avoid the further accrual of interest which can many times be a very significant reduction in the amount you would otherwise pay under an installment plan.