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June 2020 Archives

Considering back taxes and bankruptcy as a debt relief option

Massachusetts residents probably do not like owing money to anyone, but unfortunately, it seems to be a fact of life, especially during the current circumstances. If you find yourself in this predicament, you may owe back taxes along with other debt you cannot pay, and you may have questions about taxes and bankruptcy and wonder if it could help in your situation. The problem is that you heard that taxes cannot be discharged through bankruptcy, but is that always the case?

It could take some time for the IRS to catch up

As businesses here in Massachusetts and around the country reopen, many feel the crunch as they attempt to catch up on matters that have been unattended to in recent months. And they are not the only ones. The IRS has been stockpiling paperwork and paper returns, and as more employees return to work, they have an arduous task ahead of them. Even as taxpayers must meet the July 15 deadline for filing their federal income tax returns, the agency is not saying how long it will take to get caught up.

What does the IRS say tax evasion looks like?

Most Massachusetts residents do not want to tangle with the IRS. They make sure they get their tax returns filed on time and diligently try to report all their income and let the chips fall where they may. However, that does not mean that people want to pay more in taxes than they absolutely have to. According to the nation's taxing authority, some people go too far in attempting to avoid it. This is where allegations of tax evasion often arise.

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