With tax season officially upon us, many Americans will find themselves owing the government money this season. Within that group, many will owe more than they expected. Even more than what they can pay.
We talk about tax debt less than we talk about other forms of consumer debt, like student loan or credit card debt. However, it’s a significant issue that affects more people than it may seem. If you have dealt or are dealing with tax debt, know that you aren’t alone, and there’s no need for shame. The important thing is to find a way forward. Thankfully, because of bankruptcy, you can rest assured that there is a path to financial freedom.
Collectively, Americans owe billions in back taxes.
According to recent data and estimates, outstanding tax debt in America hovers around $527 billion—roughly $381 billion in federal tax debt, reported by the IRS, and $146 billion in state tax debt. We have reason to believe that figure will only increase in the years to come.
“The Internal Revenue Service (IRS) reported that at the end of fiscal year 2018 there were 13.1 million delinquent taxpayer accounts. This is a staggering amount,” one media executive said to Business Insider. “And, given the rapid expansion of the gig economy, like ride-share drivers, freelancers, or other 1099 contractors, we expect this delinquent number will grow.”
Do not ignore the problem.
It is never a good idea to prolong dealing with debt of any kind, but it becomes much more urgent with your back taxes. The IRS is empowered by the law to put you in automated collection and garnish your wages. And that is not even the worst-case scenario. The punishments can become more drastic.
Bankruptcy offers lasting relief.
Yes, payment plans and extensions are an option for those with tax debt. But penalties and interest can make thousands of dollars of tax debt feel like much more. As far as collectors go, the IRS is extremely aggressive. Wouldn’t you rather stop IRS harassment for good?
A Chapter 7 bankruptcy is a straightforward and surefire way to get the IRS off of your back. It can eliminate all of your tax debt if you meet the following criteria.
- The tax must be at least three years old.
- It must be simple income tax.
- The returns must have been filed on time.
If your tax debt isn’t three years old, I can still help you through a Chapter 13 consolidation plan. This will help you get out of debt over time, with affordable monthly payments. In about five years, you’ll be free from debt.
Talk to a bankruptcy lawyer Memphis TN trusts today
If you’re ready to take control of your tax debt, call (901) 327-2100 to speak with the bankruptcy lawyer Memphis TN has trusted for more than 30 years, or contact us here. We’ll look at your situation and discuss your goals — no strings attached.