Nationwide Tax Assistance with Proven Results
The Advocacy You Need The Results You Deserve

Tax Claims in Bankruptcy

Bankruptcy Tax Lawyer in Chicago

Do you know the rules of tax discharge as they relate to bankruptcy? Our bankruptcy tax lawyers in Chicago are, and this gives us an advantage when negotiating with the IRS. We can help you understand these rules so that you can make informed decisions.

Priority Taxes

  • One of the criteria in the IRS employee manual when considering an OIC is “To Determine What The Effects Of Bankruptcy Would Be In Analyzing The Settlement Potential.”
  • Numerous OIC’s Have Settled solely on the Threat of Bankruptcy.

Requirements to Discharge Taxes in Chapter 7

  • Taxes which do not meet the test for discharge.

They are:

  • Less than 3 years old, or
  • Less than 2 years since the return was filed, or
  • Less than 240 days since assessed, or
  • Payroll withholding taxes.
  • Must be paid in full through chapter 13; (without interest)
  • Non-dischargeable in Chapter 7
  • Penalties are not treated as priority taxes; they are treated as general unsecured claims.
  • Only the actual tax, plus the interest that accrued up to the date of filing must be paid through the plan.

Secured Tax Claim

  • IRS has filed a valid tax lien.
  • The secured portion of the claim is only up to the value of the debtor’s property, without any deduction for the exemptions which the debtor could otherwise claim.
  • There is a motivation to get the bankruptcy filed before a tax lien is filed

Unsecured General Claims

  • Tax is treated the same as any other general unsecured debt.

Payroll Taxes

  • Payroll taxes are trust fund taxes and not subject to bankruptcy discharge.

Sales Tax

  • If the sales tax is a tax on the buyer, it is treated with the same rules as normal income tax.

For more information about tax discharge in bankruptcy, contact our knowledgeable tax bankruptcy lawyer in Chicago at (800) 261-6671.

What Our Clients Have to Say

  • “The reps were very professional and they were able to reach a settlement which I was happy with.”

    Roy
  • “Throughout the entire process he was very informative, answered all of my questions promptly and was very confident that he could help me.”

    Tiffany T.
  • “They were very good at what they do and did exactly what they said they could do.”

    William F.
  • “A year later our tax debt has been settled for a fraction of what the IRS wanted.”

    Pleb G.
  • “The IRS accepted the resolution and I was all done.”

    Jody
  • “I decided to call them and it was the best call I ever made.”

    Jimmy
  • “They took the stress away from me and handled things every step of the way and kept me informed. ”

    Marcia C.
  • “Our situation was resolved a few months earlier than expected, completely to our satisfaction, and we are very grateful to them for their assistance.”

    Arleen A.
  • “Long story short they saved me over 25K.”

    Robert N.
  • “John Buchmiller worked diligently until he resolved many years of back taxes with the IRS.”

    Scott S.
  • “The people at Attorneys Tax Relief are very helpful, professional and knowledgeable.”

    Former Client
  • “Terrific! From the Attorneys, to Account Managers, and Specifically the Billing Department.”

    Ricardo
  • “I am so grateful for the way my situation was handled and would definitely recommend their services to anyone needing a tax attorney”

    Colleen S.
  • “They made my life a lot easier and took a lot of stress off of my back.”

    Dalton
  • “Working with Attorney's Tax Relief took a whole burden off me. Right now, I'm tax and debt-free.”

    Leroy

Why Hire Attorneys Tax Relief?

  • 64% Offer in Compromise Acceptance Rate

  • Free Consultations Available to Clients

  • Familiar with IRS & State Tax Codes

  • A+ Rating with the Better Business Bureau

  • Proven Track Record of Successful Results

  • Aggressive Advocacy on Behalf of Clients

  • Representing Clients Across the Country

  • Prompt Communication & Efficient Results

Schedule a Consultation Today All Consultations are Free & Confidential

With the highest Offer in Compromise Acceptance Rate in the country, Attorneys Tax Relief, LLC is
uniquely qualified to pursue quick & ethical tax resolution on your behalf.

Get Help Now
  • American Bar Association
  • National Tax Preparer Association
  • Consumer Affairs Accredited
  • BBB A+ Rating