Bankruptcy Lawyer Blog

If you owe back taxes, then you should first determine if you will have the means to pay that amount off. First it will take some conversations with the IRS to determine if you are available to pay off the balance over a set period of time. Also you will owe back taxes and penalties, so the important thing is that you first develop a gameplan.

A strong plan of attack when you owe back taxes is to find a tax attorney. A tax attorney can help you work through the issues and then you may determine that bankruptcy may be your best option. It’s not automatic that you will need to file for bankruptcy if you owe a lot of back taxes, plus you should note that many times even if you file for bankruptcy you will still owe the back taxes after you come out of bankruptcy. A payment plan will need to be established for your back taxes so you can determine a proper schedule to pay back all your creditors.

Tags: Bankruptcy and Taxes

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