Common Questions Asked by Louisiana Taxpayers with IRS Problems [Part I]
The IRS represents the most brutal debt enforcement agency in the country with the power to seize your assets, place liens on your real estate, close your business, garnish your paycheck and otherwise cause financial chaos and hardship in your life. While many fear the IRS, they do not take aggressive action to fight the powerful federal agency because they presume that the agency generally does not proceed on an illegitimate basis when auditing taxpayers or employing tax enforcement remedies. Given the recent reports about the abusive tactics of certain IRS officials, taxpayers should have more motiviation than ever to take on the federal taxing agency.
New Orleans Tax Attorney Paul A. Grego recognizes that the best way to empower taxpayers to fight back is to arm them with the information they need to understand their legal rights and options. Mr. Grego has provided answers to general questions that may be relevant to those who face a multitude of IRS issues including the following:
- Failure to file tax returns
- Unpaid tax
- IRS enforcement tools
- Audits
Can the ability of the IRS to enforce a tax debt through a wage assignment or other remedies be barred by the statute of limitations?
The statute of limitations for enforcement of tax obligations is ten years from either the date the return was due to be filed or the date the return was filed whichever occurred later in time. However, this period can be extended if you request an offer in compromise or file bankruptcy.
Are federal income taxes subject to bankruptcy discharge in Chapter 7 or Chapter 13?
If three years have passed since the taxes were due or filed (whichever is later) before you file Chapter 7 or Chapter 13, the taxes usually will qualify for bankruptcy discharge.
May the IRS arrest me for owing unpaid taxes?
Generally, the failure to pay income taxes is not a crime though intentionally lying or misrepresenting your income and expenses may be a criminal act. If you are concerned about potential criminal liability for an IRS issue, you should immediately speak to an experienced New Orleans tax lawyer.
Are there any potential adverse personal income tax consequences if I short sale my home or exercise a deed in lieu to avoid a foreclosure on my credit report?
If you are considering this type of foreclosure alternative because you cannot pay your mortgage, it is important to consult with a Louisiana tax attorney because the IRS may pursue you for cancellation of indebtedness income. This can leave you in a much worse position than foreclosure because the IRS has much more powerful tools for enforcing a debt than mortgage lenders.
If you have additional questions about IRS issues, we invite you to read Part II of the FAQ blog. If you have more specific tax questions, you should contact experienced Louisiana tax attorney Paul A. Grego. We offer a free initial consultation so that we can answer your questions and provide an initial assessment of your situation. Call us today at 504-302-4949 or email us.