Struggling with Tax Debt? Our Tax Debt Resolution Services Can Benefit You Now
March and April can be particularly stressful for those who are struggling with tax debt. It’s difficult to think of the year ahead as a fresh start when the IRS deadline to file your taxes is right around the corner.
You may be in a position in which the IRS or the Colorado Department of Revenue is garnishing your wages, levying your bank account’s funds, or has a lien against your home, and you’re looking back at multiple years of tax debt and wondering what you can do about it.
Fortunately, these challenging tax debt scenarios can be resolved with the help of an expert tax debt attorney. Wink & Wink can be your strategic partner in tax debt resolution to help set you on the path to a brighter financial future – one that doesn’t include the worries and stress that come with tax debt.
To find a tax debt settlement solution that is best for you, schedule a free consultation with our Denver tax attorneys. Solutions for your tax-related challenges include a release from levies and garnishments, positioning you with a “currently not collectible” status, an Offer in Compromise, or a reasonable payment plan, as well as Chapter 7 and Chapter 13 bankruptcy.
Wink & Wink’s Denver Bankruptcy Attorneys Provide Several Tax Debt Settlement Solutions
When you schedule a consultation with Wink & Wink’s tax debt attorneys, we begin by listening to your specific situation and reviewing all your tax-related challenges. While many who struggle with tax debt feel a significant amount of worry, our understanding and patient attorneys will explain that there’s nothing to feel ashamed of, and that these difficulties can happen to anyone. In fact, it’s likely one of our previous clients was in a similar situation and got back on their feet. Wink & Wink doesn’t only offer solutions that are suitable for your situation – we also offer a feeling of relief and security about the future.
We typically offer our clients a tax debt resolution strategy that includes bankruptcy – but it isn’t the only approach. Because Wink & Wink provides a full suite of tax resolution options that include bankruptcy, as well offers in compromise, “currently not collectible” status, and payment plans with the IRS and Colorado Department of Revenue, we can customize your legal strategy for tax resolution based on your particular situation, ensuring that you end up with the best possible outcome for your struggle with tax debt.
Chapter 7 bankruptcy is the best option for tax debt resolution when your tax debt is dischargeable, which requires the following:
- Your income is lower than the legal income threshold for Chapter 7 bankruptcy, and you can’t reasonably pay your debts, including tax debt.
- Your tax debt is from returns that were due at least three years ago.
- You’ve filed tax returns for the years you owe at least two years ago.
- The IRS hasn’t assessed your tax debt for at least 240 days.
- You have not been convicted of a tax-related crime (tax fraud or tax evasion).
- The IRS has not filed a ‘substitute for return’ (SFR) for the years you owe.
Please note that the above analysis is applied to every year you owe. You may get out of some liability while still owing some.
The benefits of Chapter 7 bankruptcy:
- You receive an automatic stay and are protected from all creditors.
- You are also protected from wage garnishments and tax levies after you file.
When Chapter 13 bankruptcy is the best option as a tax debt settlement solution:
- You’re not eligible for Chapter 7 because your income is too high.
- You’re able to pay your taxes from returns that were due within the past three years over a three-to-five-year Chapter 13 bankruptcy plan, as they are considered a “priority debt.”
- You have older, dischargeable debt or credit cards and other debts (for example, medical debt) that will be subject to bankruptcy discharge.
The benefits of Chapter 13 bankruptcy:
- Your credit cards and other debts, such as medical debt, can be discharged as a “non-priority debt.”
- If your taxes came due more than three years before you filed for bankruptcy (and you filed a return at least two years ago) these debts could potentially be discharged much like other “non-priority debts.” Keep in mind, however, that your taxes cannot have been reassessed by a taxing authority (city, state, or federal) within 240 days of filing for bankruptcy.
How Can Wink & Wink’s Denver Bankruptcy Attorneys Help with Tax Debt Through Solutions Other than Bankruptcy?
Bankruptcy is one option for tax debt resolution that we can explore. However, if bankruptcy isn’t right for you, Denver tax attorneys typically offer one of these strategic solutions:
- Release from Tax Levies or Garnishments
Although it is within the rights of the IRS to levy your assets or garnish your wages through your employer, this does not mean that you can’t find a legal solution with Wink & Wink to release you from this financial challenge. Wink & Wink’s tax debt attorneys can help you get this release.
- Currently Not Collectible Status or a Payment Plan
If your tax debt was being levied or garnished, you can move out of this “in collections” status by claiming financial hardship. In some cases, Wink & Wink can recommend remaining in hardship long enough for a statute of limitations to pass, and your prior tax debt will be considered uncollectible.However, if your assets or income would allow you to pay your back taxes, you can enter a repayment plan – which includes interest. Therefore, it is important to consider whether this would be the best option or if Wink & Wink can develop a solution that will benefit you more significantly.
As with any solution from the leading bankruptcy and tax debt attorneys in Denver, we will work to find the best resolution for you – which is something that debt consolidation or tax resolution companies can’t offer. If these companies don’t provide the service that’s best for you, it’s not in their best interest to work in your best interest, so we instead recommend our team of attorneys who have experience with the full suite of options for tax resolution including bankruptcy.
- Offer in Compromise
Similar to leveraging bankruptcy as a tax debt resolution strategy, if your income and assets do not allow you to repay your taxes, you may be able to make an offer to the IRS to settle your taxes. This can be especially valuable if your taxes cannot be discharged in bankruptcy because they are from tax years which came due within the last three years, you have debt on returns from the last two years of taxes, or the IRS has issued ‘substitute for returns’ for years in which you did not file. In this case, an offer in compromise can be effective. If you are struggling with multiple years of tax debt, you can even combine an Offer in Compromise with bankruptcy – with assistance from Wink & Wink and our experience with employing tax law to your advantage.
Avoid National Tax Debt Resolution Companies and Discover a Variety of Customized Options with Our Denver Bankruptcy Attorneys
Wink & Wink’s variety of bankruptcy and non-bankruptcy resolutions for your tax debt offer choices that can benefit Denver-area residents suffering from financial hardship. We have your best interest in mind when our tax debt attorneys draw up a plan to help you find a better path forward.
However, there are many national companies that promise tax debt settlements, but aren’t offering the most effective tax debt resolution that a Denver tax attorney can. These companies aren’t necessarily presenting your best solution because they may not provide the service that is best for you.
For the best range of options, you need the leading tax debt attorneys in Denver at Wink & Wink, who are also experts in bankruptcy. We look forward to helping you find a resolution so you can feel the relief you deserve and start fresh with your finances. Get in touch with us at (303) 410-1720, or send us a message for a free consultation.