Indiana Back Taxes Lawyer

A Back Taxes Lawyer Offers You Confidentiality with Attorney-Client Privilege

Attorney Jerry E. Smith is both a lawyer and a certified public accountant (CPA). This offers you a huge advantage when discussing your back taxes issues. He has the insights of a CPA while offering the protections of a lawyer. Everything you discuss with a tax lawyer is highly confidential and protected by attorney-client privilege. Therefore, you can speak freely with Jerry E. Smith about all of your back taxes issues without concern. We do not judge. We simply work to find solutions.

There is no client-CPA privilege in court. When you work with a CPA, they could potentially testify against you. Whatever you said or discussed with your CPA may be fair game in a courtroom and might be used as evidence against you.

While CPAs rely on books about tax law, tax lawyers use those books and the tax code, regulations, and rules. Jerry E. Smith can read and understand these primary sources as well as court decisions that interpret them. Your situation may not fit neatly into a tax rule, statute, or prior court ruling. Thanks to his education and experience, Jerry E. Smith can analyze your facts and argue how a tax applies in your circumstances.

Tax lawyers are ethically obligated to advocate zealously, professionally, and intelligently for their clients, whether that’s in court or on the telephone negotiating a resolution. We will disagree and argue why the tax agency is wrong and that it should see things your way. Our law firm will always fight hard for the best outcome possible. You can rest assured that you’re in good hands.

“Get Hope. Get Help. Get Peace of Mind.”

How long are you liable for back taxes?

Indiana state tax debt has a 10-year statute of limitations. Federal tax debt – money owed to the IRS – also has a 10-year statute of limitations (with some notable exceptions). After the 10 years is up, the IRS and Indiana must stop their tax collection efforts.

A “statute of limitations” refers to the amount of time a creditor has to file a lawsuit to collect an unpaid debt. The 10-year limitations period on federal and state tax debt begins to run on the date of the tax assessment.

Keep in mind, however, that the 10-year deadline can end up lasting significantly longer than 10 years in some circumstances because the limitations period can be suspended one or more times for a variety of reasons. The time during which the statute of limitations is suspended does not count toward the 10-year deadline. The statute of limitations is suspended when …

• you file for bankruptcy and the court issues an automatic stay preventing the IRS from taking collection action. The suspension lasts for the duration of the bankruptcy case plus six months.
• the IRS considers your request for an installment agreement, for innocent spouse relief, or for an offer in compromise.
• you live outside the United States continuously for at least six (6) months.
• you voluntarily agree to extend the statute of limitations beyond 10 years.

Sometimes a person enters into an installment agreement with the IRS allowing for partial payment of the amount due and signs a form waiving the 10-year limitations period. By law, this extension can go on for no longer than six additional years. However, before signing such an agreement, you should talk to a skilled tax lawyer and explore your legal options.

Can you settle back taxes?

A back tax return lawyer may be able to negotiate on your behalf.

It’s possible to settle back taxes with the IRS through what’s known as an Offer In Compromise.

The IRS will consider an offer in compromise in some situations, which allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you are unable pay your full tax liability or if doing so creates a financial hardship. The IRS will consider things like your …

• income,
• ability to pay,
• expenses, and
• asset equity.

The IRS generally approves an offer in compromise when the amount offered is similar to the most it can expect to collect within a reasonable period of time.

Back Taxes FAQs

An attorney for back taxes answers your questions.

There are several frequently asked questions that people have when they owe back taxes and are trying to figure out how to interact with the IRS or state treasurer’s office. Following are answers to some common questions.

Bankruptcy in the U.S. is governed by federal law (rather than state law), and which type of bankruptcy you pursue depends on your unique situation. For introductory information about bankruptcy, see Bankruptcy Basics at USCourts.gov. Generally, individuals pursue either Chapter 7 or Chapter 13. Only certain people qualify for Chapter 7.

All of the following conditions must be met to wipe out federal tax debt though filing Chapter 7 bankruptcy:

• The taxes are income taxes. Taxes other than income cannot be eliminated in bankruptcy.
• The debt is at least 3 years old. The tax return must have been originally due at least 3 years prior to filing bankruptcy.
• You filed a tax return. At least 2 years before filing bankruptcy, you must have filed a tax return for the debt you desire to discharge.
• You pass the “240-day rule.” At least 240 days must pass since the IRS assessed the back taxes before you file bankruptcy.
• You did not commit fraud or willful evasion. If you filed a fraudulent tax return or otherwise attempted to evade paying taxes, bankruptcy cannot eliminate back taxes.

The IRS offers additional guidance on back taxes and filing Chapter 13. Before you consider filing a Chapter 13, the IRS lays out these requirements:

• You must file all required tax returns for tax periods ending within four years of your bankruptcy filing.
• During your bankruptcy you must continue to file, or get an extension of time to file, all required returns.
• During your bankruptcy case you should pay all current taxes as they come due.
• Failure to file returns and/or pay current taxes during your bankruptcy may result in your case being dismissed.

Information About Tax Collection Processes

Both the federal government and Indiana state government publish information that explains their tax collection processes. While overdue taxes can feel like a scary topic, just remember that information is power. The more you know, the better position you’ll be in to make informed decisions. Here are some links that might prove useful:

• The IRS Collection Process
• Filing Past-Due Tax Returns with the IRS
• Indiana State Tax Collection Process
• 3 Stages of Indiana Department of Revenue Tax Collections

Client Testimonial

”I would totally recommend anyone to Jerry as their bankruptcy lawyer. He is by far the greatest I’ve ever seen to do it, he was very patient with me and he helped me in any way he knew how, not only did he work with me as far as my bankruptcy he helped me tremendously financially. I couldn’t thank him enough.” – Takila Beech (Google Review)