Ellicott City, MD Tax Debt Attorneys

Bankruptcy Lawyers Helping to Discharge Eligible Tax Debts in Ellicott City, Maryland

The IRS can be aggressive when pursuing tax debts. If you owe taxes, you might have experienced relentless letters and legal threats. Small businesses, entrepreneurs, and independent contractors are especially likely to struggle with tax debts. Taxes can take up a fairly large portion of your profits, particularly when you are just starting out and are operating on thin margins.

If your income level has changed in recent years, you may also have difficulty with tax burdens. Underestimating the taxes you must pay can lead to a tax bill you simply cannot cover. This is very easy to do. Even qualified tax professionals cannot always accurately predict what a business or individual might owe at the end of the tax year. Fortunately, some tax debts are dischargeable through bankruptcy. The older your tax debt is, the more likely it is to be discharged.

Law Offices of Marc A. Ominsky, LLC will do all we can to have your qualified tax debts discharged through bankruptcy. Our skilled Ellicott City, MD bankruptcy lawyers understand how tax debts can sneak up on you. In our more than 50 years of combined legal experience, we have helped numerous people who have struggled with tax debts. Our hands-on attorneys can help you in real time when you reach out to us. We will take quick action to protect you. We offer military and law enforcement discounts, so please let us know if you qualify.

Which Tax Debts Are Dischargeable Through Bankruptcy?

Fortunately, many types of tax debts can be discharged during a Chapter 7, Chapter 13, or Chapter 11 bankruptcy. Factors that affect whether a tax debt is dischargeable include:

• Whether You Filed: You cannot discharge a tax debt if you have not filed a tax return for that year. If you know that you are likely to owe taxes after filing, it is important to file even if you cannot immediately pay what you owe. If you are behind on filing taxes and are planning to file bankruptcy, you will likely need to prepare your tax returns before starting your bankruptcy case. This is normally required by the bankruptcy court as well.
• How Old the Tax Debt Is: Income tax debts that are less than three years old generally cannot be discharged. Older income tax debts may be discharged quickly in a Chapter 7 bankruptcy. Your financial circumstances may have changed drastically since these debts accrued.
• The Type of Tax Debt: Income tax debts are typically eligible for discharge if they meet other requirements. Property taxes, a business's payroll taxes, and other types of taxes are normally not dischargeable.
• Whether You Are Filing for a Business or as an Individual: Business tax debts and individual tax debts may be treated differently in bankruptcy court. Individual income taxes are sometimes easier to discharge than certain taxes imposed on corporations or other types of businesses.
• Which Type of Bankruptcy You File: There are some differences between how tax debts are handled in a Chapter 13 bankruptcy as opposed to a Chapter 7 or Chapter 11 bankruptcy. In Chapter 13 bankruptcy, tax debt is considered a priority for repayment over other forms of debt you owe. You would likely pay back most or all of your tax debt through a Chapter 13 repayment plan. In a Chapter 7 bankruptcy, qualifying tax debts can normally be discharged as soon as the bankruptcy process is complete.

Discharging tax debts can be extremely complicated. It is important to work closely with a qualified bankruptcy lawyer if you are struggling with tax debt.

Contact Our Ellicott City, MD Tax Debts and Bankruptcy Lawyers

Law Offices of Marc A. Ominsky, LLC is highly experienced in helping businesses and individuals discharge qualifying tax debts. Our hands-on Ellicott City bankruptcy attorneys will do all we can to free you from a tax burden you could not manage. Contact us at 443-539-8712 for a complimentary consultation.