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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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my question is: since i owe 1040 taxes for 3 yrs and if my

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my question is: since i owe 1040 taxes for 3 yrs and if my home is worth less and i owe more is there a way to settle with a lesser amt than i owe. I owe more than 10,000 in back taxes.. i know i must pay 941s in total
thanks

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

Do you want to settle your tax debt or try to discharge them?

WALLSTREETESQ :



f the income tax debt meets all five of these rules, then the tax debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions.

  1. The due date for filing a tax return is at least three years ago.

  2. The tax return was filed at least two years ago.

  3. The tax assessment is at least 240 days old.

  4. The tax return was not fraudulent.

  5. The taxpayer is not guilty of tax evasion.





 

Customer:

Well, that's a good question. i have filed each year. however, I have not paid my 1040 taxes

Customer:

in full.. The 941s must be paid as I understand it.

Customer:

If I wanted to settle the 1040 taxes what would that entail.. And from what you are indicating

WALLSTREETESQ :

In terms of a settlement, an actual filing of bankruptcy may help you,

Customer:

above, I meet the criteria, I think.

WALLSTREETESQ :

it is possible to apply for an Offer in Compromise,

WALLSTREETESQ :

Which according to the IRS Your initial payment will vary based on your offer and the payment option you choose:



  • Option 1: Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.

  • Option 2: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.


If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package for detail


 

WALLSTREETESQ :

Or list the tax debt in a potential chapter 13 or chapter 7 filing,

WALLSTREETESQ :

and have some of the taxes discharged, or spread out in a 60 month payment plan as per the chapter 13,

WALLSTREETESQ :

Also, if you qualify for a chapter 7,

WALLSTREETESQ :

that may help you qualify for an offer in compromise with the IRS to reduce your total tax liability

Customer:

I know i won't meet the Low Income Certification guidelines. I make too much.

Customer:

I t hank you. This gives me more information to think about. There's a lot to all of this and I want

Customer:

to be as knowledgeable as I can. thank you.

WALLSTREETESQ :

If you have income above the state average, a chapter 13, may be best, XXXXX XXXXX

WALLSTREETESQ :

help you spread out whatever amounts you owe to the IRS, and possibly reduce your debts,

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask

WALLSTREETESQ :

If satisfied please press the accept button so we can receive credit

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you