DISCHARGING TAXES ATTORNEY SERVING LOS ANGELES & ORANGE COUNTY, CA
Businesses that are struggling to pay debts often get into trouble over payroll taxes. Few creditors are as aggressive or wield as much power as an IRS tax revenue officer. Revenue officers can hound business owners, threatening liquidation and seizing assets they need to run their business. If your business is having tax debt problems, Chapter 11 bankruptcy may provide a solution.
At the Orantes Law Firm in Los Angeles, our attorneys are dedicated to helping business owners throughout Southern California obtain relief from tax debts. We offer a free initial consultation to look at the tax debt problems you face and give you honest answers about your rights and options.
DISCHARGING TAX DEBTS IN CHAPTER 11 BANKRUPTCY
Chapter 11 bankruptcy includes an automatic stay to protect you from aggressive debt collection tactics by IRS revenue officers. When you file Chapter 11 bankruptcy, you can also obtain a discharge of certain types of tax debt. For tax debts that cannot be discharged, you may be able to obtain some advantages by paying the debt over time without interest or penalties.
One common type of business tax debt is a payroll tax. There are two types of payroll taxes:
Trust fund taxes (money that the business withholds from employees to pay the employees’ portion of Social Security and Medicare contributions)
Employer-matching contributions for Social Security and Medicare
While trust fund taxes cannot be discharged, employer-matching contributions can be. Certain other types, such as individual income taxes that are more than three years old, may also be discharged provided certain requirements are met. Because the rules are complex, it’s important to consult an experienced Chapter 11 lawyer before you file bankruptcy.
CONTACT OUR LOS ANGELES CHAPTER 11 BANKRUPTCY ATTORNEYS
For more information about discharging taxes in Chapter 11 bankruptcy, call (213) 340-0534 or contact us by e-mail to schedule a free initial consultation. Se habla español.