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Springfield Tax Debt Attorney

Serving Clients Through Branson and Lebanon

There are many types of taxes for which individuals and business may be liable, including income taxes, real and personal property taxes, sales tax, and trust fund taxes. Although many taxes are not able to be discharged in bankruptcy, including sales tax and trust fund taxes, some taxes are eligible to be discharged under specific circumstances allowing you some tax debt relief.

Have serious tax debts? Get a free consultation with our tax debt lawyers in Springfield for guidance. Contact us online or call (417) 213-5006 today.

When Can Tax Debts Be Discharged?

Generally, income taxes owed to the IRS or a state Department of Revenue may be discharged under the following circumstances.

The Tax Debt Must Be At Least Three Years Old

For example, if your 2015 tax returns were due on April 15, 2015 then your 2015 taxes were eligible to be discharged beginning April 15, 2018. Your 2018 taxes would be due on April 15, 2019. In order for 2018 income taxes to be eligible to be discharged, you would have to wait until April 15, 2022, to file your bankruptcy case. Any extensions may also impact this time frame.

The Tax Returns Must Have Been Filed More Than Two Years Ago

If you owed taxes for 2015 but waited until 2018 to file your tax return, your 2015 income taxes would not be eligible to be discharged. This issue is further complicated by case law that states a late filed tax return may not be considered a tax return at all.

The Taxes Must Have Been Assessed Against You More Than 240 Days Ago

Typically, the IRS assesses taxes to you when you file your tax return. However, if your tax return is audited and the IRS imposes additional tax liability as a result of the audit, the assessment may not be completed until well after a tax return was filed.

Even if your tax liability meets these guidelines, there are still ways taxes can survive a bankruptcy case. The IRS and state taxing agencies have the authority to place liens against real estate and other personal property you own, and the liens can remain even after bankruptcy.

Personal property taxes may be eligible to be discharged in bankruptcy if they were “last payable without penalty” more than a year before the bankruptcy case was filed. In Missouri, property taxes are due on December 31 of the year they are assessed. For example, 2018 personal property taxes are due on December 31, 2018.

In order to be dischargeable in bankruptcy, the case must be filed more than a year after the due date of the taxes. Therefore, for 2018 personal property taxes to be dischargeable, a bankruptcy case would have to be filed on January 1, 2020, or later.

Call A Springfield Tax Debt Lawyer at (417) 213-5006

Determine if your tax debt can be eliminated with bankruptcy by speaking with our bankruptcy attorneys who understand the necessary requirements for this type of discharge.

If your tax debt does not meet the requirements for discharge, there are still benefits a bankruptcy may provide. For instance, repaying tax debts will often mean owing additional penalties, fees and interest to the taxing organization. In a Chapter 13 bankruptcy, tax debts are paid as a priority debt, therefore, getting paid through your plan without penalties and fees.

If you have tax debt issues that need to be resolved, contact our Springfield attorneys today to begin your initial consultation.

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Read What Real People Have to Say
    We had a great experience

    “I felt very confident in them and we didn't have any issues when it became time to go to court or when we completed our discharge.”

    - Holly H.
    Mr. Licata was very understanding and went through our information very thoroughly.

    “After reviewing, Mr. Licata determined it would be in our best interest to wait six months to file to save us an additional $6,000 -$8,000 in the long run.”

    - Josh B.
    Professional and responsive at all times.

    “Filing bankruptcy is an emotional and difficult experience. The staff at Licata were always reassuring and I felt cared for and understood. Thank you Licata Law Firm for helping me through a difficult time and for giving me a fresh start!”

    - Marla C.
    Licata law firm is the best to work with

    “Licata law firm is the best to work with. They are efficient and polite. They always return calls and emails promptly. I would recommend them to everyone.”

    - Steven W.
    Not only was this firm helpful and affordable, but Marc Licata was kind and understanding.

    “He helped me to understand that sometimes debt consolidation in Springfield Missouri the only option, and that I had exhausted all other means of taking care of my family. I have recommended this firm to others and would do so, over and over again!”

    - Jennifer C.

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