Filing Income Taxes While in a Chapter 13 Bankruptcy

We can file all of your back tax returns, even if you have lost your records.

FILING INCOME TAXES WHILE IN A CHAPTER 13 BANKRUPTCY

Filing taxes under a Chapter 13 Bankruptcy repayment plan can feel complicated because you are not making payments directly to creditors. That is, you are not writing separate checks to the bank for your mortgage or checks to your ex-spouse for support—those payments that you use to do and then deduct on your taxes. As a result, a client in a Chapter 13 Bankruptcy repayment plan might hesitate to claim those deductions at tax time. This is a mistake. Writing a check to a bankruptcy trustee doesn’t change the character of the payments, just the payee. The bankruptcy trustee is required to make those payments on your behalf to your respective creditors. For the purposes of federal income taxes, it is as though you have made the payments yourself.

Chapter 13 filers may be required to pledge part or all of their next several refunds toward debt repayment. If we think a client will have a refund, we suggest that the client adjust their withholding or reduce their estimated tax payments if they do not want refunds applied to past debts.

IRS Relief is only a phone call away.
Call and talk personally with Scott.

480-926-9300


True Testimonials

So what is a true testimonial? There are two types that you should only have confidence in.

The first is a letter from the IRS stating what the settlement was.

The second type of testimonial is to actually talk to a client that had a similar problem that we recently resolved.



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