{"id":2622,"date":"2013-06-24T14:48:20","date_gmt":"2013-06-24T18:48:20","guid":{"rendered":"http:\/\/thegraftonfirm.com\/?p=426"},"modified":"2021-08-16T10:48:16","modified_gmt":"2021-08-16T14:48:16","slug":"baltimore-tax-problem-solver","status":"publish","type":"post","link":"https:\/\/thegraftonfirm.com\/bankruptcy\/baltimore-tax-problem-solver","title":{"rendered":"Baltimore Tax Problem?  We may be able to help!"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Sometimes_Im_a_Bankruptcy_Attorney_but_sometimes_Im_just_a_Baltimore_Tax_Problem_Solver\"><\/span>Sometimes I&#8217;m a Bankruptcy Attorney, but sometimes I&#8217;m just a Baltimore Tax Problem Solver!<span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6636d7c5602fb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6636d7c5602fb\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/thegraftonfirm.com\/bankruptcy\/baltimore-tax-problem-solver\/#Sometimes_Im_a_Bankruptcy_Attorney_but_sometimes_Im_just_a_Baltimore_Tax_Problem_Solver\" title=\"Sometimes I&#8217;m a Bankruptcy Attorney, but sometimes I&#8217;m just a Baltimore Tax Problem Solver!\">Sometimes I&#8217;m a Bankruptcy Attorney, but sometimes I&#8217;m just a Baltimore Tax Problem Solver!<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/thegraftonfirm.com\/bankruptcy\/baltimore-tax-problem-solver\/#Tax_problems_Sometimes_the_reason_doesnt_matter\" title=\"Tax problems?\u00a0 Sometimes the reason doesn&#8217;t matter.\">Tax problems?\u00a0 Sometimes the reason doesn&#8217;t matter.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/thegraftonfirm.com\/bankruptcy\/baltimore-tax-problem-solver\/#Sometimes_This_Baltimore_Tax_Problem_Solver_doesnt_use_Bankruptcy_to_solve_your_problems%E2%80%A6\" title=\"Sometimes This Baltimore\u00a0Tax Problem Solver\u00a0doesn&#8217;t use Bankruptcy to solve your problems&#8230;\">Sometimes This Baltimore\u00a0Tax Problem Solver\u00a0doesn&#8217;t use Bankruptcy to solve your problems&#8230;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/thegraftonfirm.com\/bankruptcy\/baltimore-tax-problem-solver\/#Sometimes_your_tax_problems_are_as_simple_as_correcting_a_mistake%E2%80%A6\" title=\"Sometimes your tax problems are as simple as correcting a mistake&#8230;\">Sometimes your tax problems are as simple as correcting a mistake&#8230;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>One of the biggest expenses we face are taxes. \u00a0Some people spend more on paying Income and Social Security\/Medicare taxes than they do on housing. \u00a0 And sometimes those payments aren&#8217;t enough. \u00a0Tax liability is not something many people have to worry about because taxes are deducted regularly from their paychecks and they file a normal return and get a modest refund. \u00a0Others spend all year overpaying their taxes, giving the Government an interest-free loan, in order to get a larger refund. \u00a0But sometimes decisions are made or situations change that upset that tax balance. \u00a0Perhaps it was a withdrawal from a retirement account. \u00a0The money that went in there tax free comes out and gets taxed. \u00a0Another tax problem many of our clients have had over the years has been a massive boost to reported income due to charged off debt. The debt charge-off gets reported as income and taxed. \u00a0Remember this last scenario, we&#8217;ll come back to that.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tax_problems_Sometimes_the_reason_doesnt_matter\"><\/span>Tax problems?\u00a0 Sometimes the reason doesn&#8217;t matter.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regardless of the reason you owe taxes, there are some important things to consider. \u00a0Taxes are often thought to NOT be dischargeable in bankruptcy. \u00a0This is untrue. \u00a0Taxes can be both dischargeable and non-dischargeable, depending on when they were due, when you filed the return, and how long ago they were assessed. \u00a0If you meet the criteria, your taxes can be discharged. \u00a0It&#8217;s also important to realize that a payment plan does not increase the period of time you have to wait for taxes to become dischargeable, some things like an Offer In Compromise will extend your dischargeability deadline.<\/p>\n<p>Filing extensions to file your taxes is important if you&#8217;re going to be late, but it can also push back the date on which a bankruptcy can help you discharge your taxes. \u00a0Don&#8217;t get me wrong, an Offer in Compromise is a great tool to use and when appropriate, it absolutely should be used, but to use it as a delaying tactic is ineffectual. \u00a0As a Baltimore Tax Problem Solver, Offer In Compromise is a tool I will absolutely use for the right client in the right situation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sometimes_This_Baltimore_Tax_Problem_Solver_doesnt_use_Bankruptcy_to_solve_your_problems%E2%80%A6\"><\/span>Sometimes This Baltimore\u00a0Tax Problem Solver\u00a0doesn&#8217;t use Bankruptcy to solve your problems&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Now let&#8217;s revisit that scenario of a debtor with charged off debts and a tax hit because of the additional reported income. \u00a0If you fall behind on your bills, the original creditor can sometimes take a tax write-off on the bad debt. \u00a0When they do this, they need to file a 1099-C with the IRS. \u00a0They send you a copy and you&#8217;re required to file it with your taxes. \u00a0For many people, this is income.<\/p>\n<p>I have represented an individual in the past who had a 2nd mortgage charged off in this manner, to the tune of $20,000. \u00a0She took it to a tax preparation store and was told she owed nearly $4,000 in taxes despite normally getting a $5,000 refund. \u00a0She was already broke and had significantly more debt than she had assets. \u00a0Her home had been foreclosed and she was living paycheck to paycheck. \u00a0There was no way she could afford this $4,000.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sometimes_your_tax_problems_are_as_simple_as_correcting_a_mistake%E2%80%A6\"><\/span>Sometimes your tax problems are as simple as correcting a mistake&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We filed a bankruptcy, but did not seek to get the taxes discharged. \u00a0It was too soon for that. \u00a0Instead, I advised her to go see a real tax accountant and re-file that return with a declaration of insolvency. \u00a0She wound up with a $2,000 refund after paying the accountant and my fee.<\/p>\n<p>As a Baltimore Tax Problem Solver, I often find myself wishing that my clients would reach out to me sooner. \u00a0Things tend to get messier when people wait to reach out for help. \u00a0In the case of Overdue Taxes, that couldn&#8217;t be more true. \u00a0Once the IRS files a tax lien, a person&#8217;s options for getting out of their tax situation becomes much more limited. \u00a0Even dischargeable taxes would now need to be paid to some extent.<\/p>\n<p>Don&#8217;t wait too long. \u00a0Give us a call or click through for an appointment today!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sometimes I&#8217;m a Bankruptcy Attorney, but sometimes I&#8217;m just a Baltimore Tax Problem Solver! One of the biggest expenses we face are taxes. \u00a0Some people spend more on paying Income and Social Security\/Medicare taxes than they do on housing. \u00a0 And sometimes those payments aren&#8217;t enough. \u00a0Tax liability is not something many people have to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":482,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57,58,60,62],"tags":[],"_links":{"self":[{"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/posts\/2622"}],"collection":[{"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/comments?post=2622"}],"version-history":[{"count":0,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/posts\/2622\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/media\/482"}],"wp:attachment":[{"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/media?parent=2622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/categories?post=2622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thegraftonfirm.com\/wp-json\/wp\/v2\/tags?post=2622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}