A properly planned bankruptcy can eliminate your unpaid state and federal income tax liabilities. It will also force the IRS to immediately stop their collection actions, including the immediate release of wage and bank garnishments and asset seizures.
If you are unable to repay the IRS, you could be able eliminate all of your income tax liabilities without any repayment in a Chapter 7 bankruptcy. If you are able to make some payment to the IRS, we often suggest that you elect to make your payments through a Chapter 13 bankruptcy. This stops the accrual of interest and penalties and can also result in you repaying substantially less than the full amount of what you owe, sometimes as little as 5%.
There are many factors that Howard Levy is experienced in analyzing to determine whether bankruptcy is right for you, including whether income or employment taxes are owed, when you filed your tax returns, and if the IRS has filed a tax lien against your property.