Practice Areas

Working with the IRS

Some people we work with at Acclaim Legal Services are facing current or past IRS debt having not had the money to pay. Have you avoided filing because you don't have the money to pay?

The new bankruptcy law has created some nuances in how the debt is handled by the IRS in bankruptcy proceedings. It is important to work with a highly skilled and experienced bankruptcy attorney who keeps up-to-date on bankruptcy law. The bankruptcy lawyers at Acclaim Legal Services have dedicated their entire legal practice to this one area. This ensures that every client is receiving the most current and appropriate advice for their particular situation.

You cannot eliminate IRS debt that occurred within the previous three years. It is non-dischargeable. It will be put into an extended repayment program in the Chapter 13 and will be paid back at 0% interest.

You CAN discharge old IRS debt and it will be treated differently depending upon whether you are petitioning for Chapter 7 bankruptcy or Chapter 13 debt reorganization.

Chapter 7: Older IRS debt CAN be discharged in Chapter 7 bankruptcy. This means it can be eliminated altogether. One of our Michigan bankruptcy attorneys can determine the status of the debt at the time of the initial free consultation.

Chapter 13: Just as credit card debt is put into a payment plan in Chapter 13, so too does old IRS debt get put into a payment plan. It is treated as general unsecured debt and is paid back at 0% interest.

What If I Haven't Filed Tax Returns and Now Owe Taxes?

Taxes owed due to non-filing present another set of issues. Please talk to one of our bankruptcy attorneys for professional legal counsel regarding your tax situation in light of your overall financial picture.

The IRS bankruptcy attorneys at Acclaim Legal Services are available to help you understand options available to deal with debt to the IRS during bankruptcy. Please contact our office to schedule a free initial consultation to discuss the specifics of your case. You can also call us at 866-261-8282.

Acclaim Legal Services is a debt relief agency serving people in Wayne County, Oakland County, Macomb County, Livingston County, St. Clair County, Genesee County, Jackson County, Lenawee County, Monroe County, Sanilac County, Lapeer County, Shiawassee County and Washtenaw County including Detroit, Livonia, Flint, Southfield, Pontiac, Mt. Clemens, Warren, Royal Oak, West Bloomfield, Troy, Ann Arbor, Dearborn, Sterling Heights, Ypsilanti, and Farmington Hills. We help people file for bankruptcy relief under the Bankruptcy Code.