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IRS Tax Relief

Tax Relief Attorney in Los Angeles

Overcome Back State & Federal Income Tax Issues with Our L.A. Legal Team

Everyone wants to be able to make timely tax payments. But financial hardships can make it difficult, if not impossible to discharge tax debt. An experienced lawyer can help you get the IRS tax relief you deserve and stop tax penalty consequences, including interest.

At RHM LAW LLP, our attorneys in Los Angeles help our clients manage their debt and get IRS tax relief. Through Chapter 7 and Chapter 13 bankruptcy options, it is possible to stop IRS garnishment and IRS levy actions to obtain immediate relief.

Contact us today for a 30-minute complimentary consultation. It could be your first step out of the dark and into the light.

Can I File for Bankruptcy on Tax Debt?

With both types of bankruptcy, Chapter 7 and Chapter 13, you can stop tax penalties and interests immediately.

  • With Chapter 7 bankruptcy, you will get an immediate stay and discharge qualifying tax debts.
  • With Chapter 13 bankruptcy, you can reorganize your debt under a three-to-five-year payment plan, instead of the IRS’s six-month plan, offering you a chance to breathe and structure some of the chaos.

Key Conditions for Discharging Unpaid Taxes in Bankruptcy

The U.S. Bankruptcy Code permits discharge of certain back taxes, but several conditions apply.

  • Taxes must be personal income tax. There are two kinds of tax debt, either business or personal. Generally, most business taxes are not dischargeable. The dischargeability of business taxes, which include sales and payroll taxes, depends on what classification they fall under.
  • Taxes must be at least 3 years or older. Taxes assessed over three years ago are possibly dischargeable through both types of bankruptcy. For example, if an individual filed for bankruptcy on August 19, 2011, only taxes that were due before April 15, 2008, could be discharged. If an extension was filed for the taxes due in 2008, then the taxes would not be dischargeable until October 15, 2011. Otherwise, you can get IRS tax relief as you pay it off under a plan you can afford.
  • Tax returns must be filed at least 2 years before filing. The individual must have actually filed the late tax return at least two years before he or she filed for bankruptcy. For example, if the taxes were due for 2003 but the tax return was filed in February, 2010, the individual’s taxes could not be discharged in bankruptcy unless he or she wait to file for bankruptcy until February, 2012 or later.
  • Taxes must be assessed for more than 240 days before filing. The taxes must have been assessed against the individual at least 240 days before he or she filed for bankruptcy. Basically, assessed means that the IRS made a notation that the individual owes taxes, as clarified in a 2010 bankruptcy court case.
  • No taxpayer misconduct. An individual’s taxes may not be discharged in bankruptcy if the back taxes resulted from taxpayer misconduct such as filing a fraudulent tax return or tax evasion. Misconduct also applies to taxpayers who failed to file a tax return altogether and never got around to filing it. No discharge is available to taxpayers who did not file taxes on their own.
  • No tax liens. Even though an individual’s back taxes may be discharged in bankruptcy, they may still face difficulties with the IRS or state taxing authority if the taxing entities placed a tax lien on their assets. If a tax lien has been secured, even if the individual’s back taxes are discharged, the IRS later may be able to enforce the lien against his or her assets like real estate or a retirement plan. Sometimes the IRS will remove their tax lien if the individual’s tax debts are discharged in a bankruptcy and the taxpayer does not really have any significant personal possessions.

If you have received a certified letter from the IRS saying you owe taxes, you have 30 days to respond. If you fail to respond, the IRS will go after you. Their process is quick and if you fail to take it seriously, you will face an even tougher challenge.

Are Business Taxes Dischargeable?

In California, any business taxes that are considered “trust fund taxes”, which includes taxes that have been withheld by a business on behalf of another individual for the taxing authorities, are non-dischargeable in bankruptcy. Typically these are most of the sales or payroll taxes. “Excise taxes” on the other hand, which are taxes collected for the benefit of being allowed to conduct business in a state, are dischargeable. Certain “non-trust fund” payroll taxes may be dischargeable as well.

Important Deadlines for Tax Debt Discharge

One of the reasons it is important to consult with an experienced local bankruptcy attorney when trying to determine if a tax debt is dischargeable is because certain events can stop or even reset the clock governing tax dischargeability.

Filing either an appeal of an audit, an offer in compromise or an action in U.S. tax court each may cause the three-year, two-year and 240-day requirements to be extended, putting consumers at risk of filing for bankruptcy too early when those requirements are not yet met.

Get Professional Help for Your Tax Relief Needs in Los Angeles

Providing big firm experience in a smaller firm setting, our Los Angeles and San Fernando Valley law offices provide a casual and accepting environment. We are open Monday through Friday from 7 a.m. to 7 p.m., as well as weekend appointments. Our attorneys offer long-term payment plans to help you through this difficult time.

Our Los Angeles bankruptcy attorneys are committed to your best interests. Call us at (213) 344-0043 today to schedule an appointment.

RHM LAW LLP

Meet Our Los Angeles Bankruptcy Specialists

Client Reviews

What Clients Say About Working With Us
    "Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding."

    Thank you for your great work on behalf of Ms. Johnson. Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.

    - Skip K.
    "They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life."
    Matt and his team are the best!!  They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life. I never felt judged or looked down on. They were efficient and really were lifesavers during this tough time. I can not recommend them highly enough!!!!
    - Rusty H.
    "He made me feel like I had options, all was not lost, and I could rebuild my credit."
    Matt is the best bankruptcy attorney in Sherman Oaks. I consulted with Matt over a chapter 7 bankruptcy. I had issues with overwhelming credit card debt after Chase increased it's APR for no reason. It set off a chain of events that were really hurting me. He made me feel like I had options, all was not lost, and I could rebuild my credit after the 7. I had some concerns about a piece of property I was having issues with and Matt also turned out to be a real estate lawyer as well! I recommend this office to anyone who is unsure of their financial situation. It doesn't hurt to find out your options.
    - Max B.
    "He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults."
    Fantastic office! I want to thank Matt for taking his time with me and sincere in his assistance. He spent over an hour with me for free during our initial consult. I left knowing exactly what's needed. He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults. Affordable and Outstanding firm and thank you for all you have done! My family thanks you!
    - David K.
    "I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home."
    I needed a bankruptcy attorney in Sherman Oaks and found Matt Resnik on Google. He has one of the best-reviewed bankruptcy law firms on Yelp so I decided to check it out his law firm for myself. I quickly found out that they are foreclosure specialists and they could help me with my issue. They made the process very easy for me and laid out my options for me. I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home. They are the best bankruptcy law firm in Sherman Oaks.
    - Joseph R.
    "Matt and his staff conducted themselves with professionalism throughout the whole ordeal."
    I worked with Matt and his team for about a year to get through the paperwork shuffle and my personal experience was nothing short of fantastic. Legal situations have a tendency to get hairy, but Matt and his staff conducted themselves with professionalism throughout the whole ordeal. To keep it short, let's just say he under-promised and over-delivered.  Rarely would I ever say this about an attorney, but overall he was just a great guy. I would not hesitate to have him on my side of the courtroom again. World market is right across the street from his office and I even decided to get his staff a thank you / holiday gift card.  World market has excellent craft beer BTW, try the Einstock White Ale. They also validate parking. That just shows this isn't a fake review.
    - Dean C.
    "He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own."
    I worked with David Kritzer at this firm, and he was great. He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own thanks to his knowledge and expertise in the field. If you have a debtor on your back go to him to get it taken care of.
    - Kelly S.
    "We are very happy that you were able to accomplish the modification of our loan in such a short period of time. Thank you again for your professional service."

    Dear Mr. Resnik: We wanted to thank you for your professional handling of our loan modification with GMAC mortgage. We are very happy that you were able to accomplish the modification of our loan in such a short period of time. Thank you again for your professional service.

    - W and B Mejia
    "As the dank blanket of economic uncertainty continues to depress the hopes of many of us, I keep your business cards and number available for others."
    This is to thank you for the exceptional work of you and your fine staff. In managing my bankruptcy and loan modification, a nearly five-year effort, your performance was stellar. I never felt alone or adrift, key concerns in those circumstances. The outcome was outstanding. As the dank blanket of economic uncertainty continues to depress the hopes of many of us, I keep your business cards and number available for others. Without hyperbole, I can attest that you are present a beacon. Thank you so much.
    - K.C.

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