Get Simple, Effective Tax Debt Relief with Help from Wink & Wink

When April comes around, those who owe Tax Debt from past years feel even more stressed about their predicament. If you’re struggling to pay your taxes, it may seem like there isn’t a solution. However, tax debt relief is available to you with the help of a tax debt lawyer.

Depending on your particular circumstances, you can even have tax debt forgiven with specific legal strategies developed by Wink & Wink, your specialists for IRS tax debt relief. Read through the situations below to see what applies to you, and find out what approach will best help you with your situation.

Our Tax Debt Lawyers Can Help You Determine Your Tax Debt Status

If you’re late on your taxes from 2023, the IRS provides clear information on how to approach these back taxes. The faster you pay these late taxes, the fewer interest charges and penalties you will incur from the IRS.

However, we completely understand if you’re simply not able to begin paying the taxes you missed in April. While the IRS does also suggest designing a payment plan with them, they also mention what is called an offer in compromise. Keep in mind that an offer in compromise is only applicable to tax years less than three years old, including the most recent tax season. The IRS considers your ability to repay your debt based on your income and expenses, as well as any equity you may have in assets, such as your home.

If you are eligible, the IRS may forgive your tax debt. In many cases, individuals end up paying 20% of their debt.

If your income level does not allow you to repay your tax debt, Wink & Wink can help you obtain a release from tax levies and garnishments while we work toward the right solution for your debt.

If your tax debt was previously levied or garnished, you can obtain a “currently not collectible” status. After this, you wait for the statute of limitations to come due on your tax debt. At this point, your debt will be relieved. If you are able to pay back your tax debt based on income and assets, Wink & Wink can also negotiate a payment plan on your behalf.

Is Your Tax Debt Eligible for Discharge? Our Tax Debt Lawyers Can Help Here, Too

If your tax debt is dischargeable, Chapter 7 or 13 bankruptcy might be your best option. To determine whether your debt is dischargeable, you must meet the following criteria:

1. Your income is lower than the income threshold for Chapter 7 bankruptcy in Colorado ($75,710 for a single person or $98,365 for a two-person family).
2. Your tax debt is from taxes that were three or more years ago.
3. You’ve filed taxes at least two years ago.
4. The IRS hasn’t assessed your tax debt for 240 days or more.
5. You have never been convicted of tax fraud or evasion.
6. The IRS hasn’t filed a return for you (known as a substitute for return, or SFR).

If you meet these criteria, Chapter 7 and Chapter 13 bankruptcy may provide significant tax debt relief.

In Chapter 7 bankruptcy, you can have your tax debt eliminated, along with your other dischargeable debts (such as medical bills and credit cards). When you file, you also benefit from an automatic stay, which protects you from wage garnishment and tax levies from your creditors, including the IRS.

In Chapter 13 bankruptcy, which becomes a relevant solution if you are over the income threshold in Colorado, you can discharge “non-priority debt,” such as credit cards and medical debt.

As far as tax debt help is concerned, taxes due more than three years ago could be potentially discharged in Chapter 13 bankruptcy, as long as you meet the criteria for discharge mentioned above. If you are not eligible, your taxes can be included in the three-to-five-year payment plan on debt that is typically negotiated in Chapter 13 bankruptcy.

Schedule a Free Consultation with Our Tax Debt Lawyers and Get Relief

Whether you owe taxes from this past year, or you’ve needed IRS tax debt relief for some time, Wink & Wink can help with your tax debt and find a customized solution for your situation.

Remember to be wary of national tax debt companies whose primary goal is to get business from those who are suffering financially. At Wink & Wink, we take the opposite approach. Our goal is to develop a strategy that is in your best interest, whether that’s simply providing advice or helping you file for Chapter 7 or Chapter 13 bankruptcy.

We want to see your tax debt forgiven or managed appropriately, so that you can feel optimistic about your financial future and get back on your feet. We look forward to helping you find relief today. Contact Wink & Wink online today, or call us at (303) 410-1720.

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