Tax Debt Bankruptcy Attorneys in Springfield, MO

Many of the clients we work with face significant state and federal tax debts resulting from things like unfiled taxes, penalties from back taxes, and divorce. For those with tax debt, it’s no longer important how and why you’ve accumulated this debt. It’s now time to take a step towards freeing yourself from the tax debt you’re currently facing. We realize that’s easier said than done and at the moment, things might seem overwhelming. We’re here to help. At Reynolds & Gold Law, our experienced bankruptcy attorneys work closely with you to determine what the best course of action may be for you. 

Schedule a Free Consultation

Our team of attorneys has years of experience helping clients throughout Springfield and Southwest Missouri address tax debts through bankruptcy. Although we cannot guarantee we can get rid of all your tax debts in bankruptcy, we can guarantee that we will work hard to achieve the best outcome for you and your family. Contact us today to schedule your free consultation. During our initial consultation, our attorneys will discuss your current tax debts to better understand what’s best for you and whether that includes filing for bankruptcy. 

Does Bankruptcy Clear Tax Debt? 

The most important question you may be asking yourself is, “Can I discharge my tax debt by filing for bankruptcy? The answer is, “It depends.” We’d love to tell you that the entirety of your state and federal tax debt can be cleared by filing for bankruptcy, but that’s not true. That being said, the following tax debts can be discharged when you file Chapter 7 bankruptcy:

  • Federal or state income tax
  • Your tax debt is at least three years old
  • You filed a tax return that includes the debt in question at least two years before filing for bankruptcy
  • Debt must be assessed 240 days or more before you file for bankruptcy
  • You did not commit fraud or willful tax evasion

If your tax debt meets the above criteria, there’s a good chance an experienced bankruptcy attorney can help you eliminate it by filing for Chapter 7 bankruptcy.

For those choosing to file for Chapter 13 bankruptcy, in most cases, you cannot discharge tax debt under any circumstances. Instead, your repayment plan will include those debts.

Can Bankruptcy Remove IRS Tax Liens?

The IRS imposes a tax lien if you fail to pay your taxes on time. Essentially, when you have a federal tax lien, the IRS makes a claim to any property that you may own to recuperate the money you owe in taxes. Liens apply to the property you own from the date of the filing of the tax lien document.

Unfortunately, if the IRS filed a tax lien before you filed for bankruptcy, there isn’t much you can do to stop them from collecting. The lien will remain against your property after the bankruptcy is finished. Unfortunately, removing the lien requires that you pay the tax debt. In that event, the best advice is to utilize a tax attorney to assist with negotiating the tax debt with a payment plan.