How To Discharge Tax Debts
Are tax debts dischargeable? Often, the answer is yes.
At the Law Office of Michael S. Schwartz, we have helped many people in Bucks County and throughout Southeast Pennsylvania obtain a partial discharge of past due taxes, including interest and penalties.
There are several methods we can use to reduce or eliminate your IRS debts:Chapter 13 bankruptcy
- by filing for Chapter 13
for you, we can force the IRS to accept a five-year repayment plan. As soon as we file, interest and penalties stop accruing and the threat of bank garnishment stops.Offer in Compromise
- we can negotiate with the IRS to accept a lump sum payment for less than the total of your IRS debts.Installment agreement
- we may be able to negotiate a repayment plan with the IRS without filing for bankruptcy.Partial elimination of IRS debts
- under certain circumstances, it may be possible to eliminate IRS debts older than three years through bankruptcy. There are some restrictions however, and this is not available in all cases.
We can also use these techniques to reduce tax obligations owed to the Pennsylvania Department of Revenue.