I Owe Back Taxes – What Can I Do?

Owe Back Taxes

Do You Owe Back Taxes?

You’re worried about not paying money that you owe the IRS. Well, why shouldn’t you be worried? Back taxes owed are nothing to ignore! What’s that you say? You don’t have the money and you can’t raise it! If you owe State, Federal, or local taxes and you are also behind in other payments to creditors, Federal Laws can give you assistance.

Filing Bankruptcy Stops Tax Garnishments!

Many times, the biggest pressure on you is the garnishment the IRS or California State Franchise Tax Board has in place. A garnishment sucks out of your wages and takes away money that is desperately needed to take care of you and your family. Filing bankruptcy stops tax garnishments: Cold. As soon as the taxing authority finds out about your bankruptcy, it is supposed to act immediately to stop the garnishment. How powerful is that? It does NOT matter what kind of tax you owe. The garnishment must stop. You may still owe the tax, but with the garnishment stopped and the other powers bestowed upon you by filing bankruptcy, you are in a better position to deal with that tax on terms you can afford, with you in control instead of them. And if the tax is of a kind that you can get rid of in bankruptcy that is the end of the garnishment forever.

A Lot of IRS Income Taxes Are Dischargeable

Next if your problem is Income Taxes (as opposed to something like Withholding taxes), we first look to see how old it is. Why? Because if the taxes you owe are more than 3 years old, you may not have to pay them back at all. Let me repeat that. You may not have to pay it back at all. Most people and even some bankruptcy attorneys don’t know this but the fact is that certain older taxes are “dischargeable” which means you can get rid of it by filing bankruptcy and not pay it back ever. There are four rules to apply to see if your back income taxes are dischargeable, but fortunately for you, we know the rules, inside and out. We apply these rules all the time and we also know how to get dead-accurate information from the IRS itself to verify what you owe and whether it is dischargeable under these four rules. Suffice it to say we get rid of many thousands of dollars in income taxes for our clients every year.

What About The Taxes I Can’t Get Rid Of?

We can get you up to 60 months to pay it back. This assumes you file the “Loan Consolidation” type of Bankruptcy case. This is also called a “Chapter 13.” What does this mean? It means you can get the IRS off your back for 60 months. It means you can set up payments that may be affordable. For instance, if you owe the IRS $12,000 in “non-dischargeable” taxes, you can, in most cases, force the IRS to take payments of as little as $225 per month. In many, if not most cases, you can also force the IRS to take payments without adding interest or further penalties. That’s a lot better than just worrying. And it’s a lot better than having the IRS grab your stuff or levy on your bank account, or worse yet, than having the IRS garnish your wages. And it’s a whole lot better than having to come up with $12,000 in cash.


Sure there’s more to it than just this, but it’s complicated to generalize and cover everyone’s potential situation. Results will vary depending on a lot of things. This example and explanation covers a good general description of how Federal Law takes a situation and fixes it for you. This information is general but should tell you that even a very bad situation can afford some fantastic possibilities if you talk to the right person.

The Law Offices of John C. Kyle has handled thousands of similar situations and we can talk with real expertise in these matters. Not everyone can boast such numbers. We can sincerely help most people that come in and talk to us.

The problem will never just go away by itself! You need to take some action and it has to be the right action! Call for a FREE Confidential Appointment! We’ll give you all of your options.

Call now for a free initial consultation! We can help!

We can solve most of your financial problems and a few more that you might not know you have!