Tax Debt Lawyer Hartford, CT
Our tax debt lawyer Hartford, CT relies on knowing that each year, following the holidays, many Connecticut residents turn their focus to their tax returns. For the majority of us, reducing the amount of tax debt we owe becomes our priority. The best time to begin thinking about how to reduce your tax debt should be before the year ends. Although it is often a year-long process, there are last-minute steps you can take to help reduce the year’s tax obligation.
A Hartford, CT tax debt lawyer from The Law Offices of Ronald I. Chorches can help you reduce how much you owe on your taxes. We are more than happy to meet with you to discuss your individual situation. In the meantime, the following are some steps you can take to help reduce your debt.
Defer Certain Income
The more you earn, the higher your tax bracket becomes. This means you could end up owing more taxes. To help lower your tax debt, consider deferring avenues of your income, including commissions, bonuses, or other types of earnings until after January 1st.
Make the Maximum Contributions Allowed to Your Retirement Accounts
If you have not hit your pre-tax limit for contributions to your 401(k) account, making deposits before the year ends can help reduce your taxable income. Another advantage is that it can boost your retirement account balance if your employer offers a matching funds program.
Consider Flexible Spending Accounts
If your employer offers flexible spending accounts for childcare or medical expenses, you could still be able to take advantage of these accounts and make pre-tax contributions. However, make sure to check with your employer to see if balances can be rolled into the next year if you will not be able to spend these funds quickly.
Sell Off Any Low-Yield Investments
If you have any stocks or shares that are not doing well, selling them off before the year ends could help offset any capital gains taxes for those investments you have that are performing better. This is referred to as “loss harvesting” and could help reduce the amount of your final tax debt.
A tax debt lawyer in Hartford, Connecticut knows that another issue in tax debt is when a client owes any prior year taxes. This type of tax debt can also involve interest, penalties, liens, or levies on any property the client owes.
A Hartford, CT tax debt lawyer can help you work with the IRS to implement the one or more of the following options:
- Working out an installment agreement that will allow the client to make monthly payments on the past due amount owed.
- Working out a compromise that allows the client to settle their debt for less than what they owe.
- Working out a temporarily delayed payment debt in the event the client has experienced a financial hardship that limits or prevents their ability to pay their tax debt.
Unpaid Property Taxes
Many people have a time or two during their lives where they run into financial troubles. This can be due to a number of issues including job loss or medical issues. It is not uncommon in these situations for a homeowner to fall behind in their mortgage payments. When this happens, they have probably also fallen behind in their property tax obligations, as well. If you find yourself in this situation, a tax debt lawyer in Hartford, CT can help.
Mortgage and Property Taxes
Property taxes can be paid in one of two ways. Either the homeowner pays the municipality directly or the property tax obligation is included in their monthly mortgage payments. When the homeowner pays the municipality directly, it is much easier to work out a payment plan because the process of a foreclosure on the property by the municipality can take several years. During this time period, the homeowner has multiple options to get caught up with the taxes, including filing for Chapter 7 bankruptcy. By discharging other debt, there will be more funds available for the homeowner to now get caught up with their property taxes.
The above scenario will likely only work if the homeowner owns their property outright. Homeowners who have a mortgage on the property are under much more pressure to get caught up. This is because the bank or mortgage company can begin the foreclosure process if the homeowner does not stay current with their property taxes and this foreclosure process happens much more quickly than if it is a municipality who is foreclosing for nonpayment of property taxes. The bank can do this even if the homeowner is current with their mortgage.
A Hartford, CT tax debt lawyer knows that in these situations, filing for Chapter 13 bankruptcy is the much better option. Chapter 13 sets up a payment plan to allow the filer to get caught up on their debt. This repayment plan can give the filer the opportunity to get caught up on their debt – including missed mortgage payments and back property taxes – while stopping the high-interest rate that delinquent debt often brings.
The repayment plan in Chapter 13 bankruptcy is usually three to five years. As long as you adhere to the approved repayment plan, your home is protected from foreclosure or any other collection activity for back property taxes. It is critical to realize, however, if you miss payments and fall behind on your repayment plan, you could lose foreclosure protection.
Chapter 13 can help protect your home from other legal actions, as well. If there are any liens that have been put on your home – such as a second mortgage, judgments, or other reasons – talk to a tax debt lawyer in Hartford, CT to see how if Chapter 13 bankruptcy is an option for your situation.
See How We Can Help
When you need the help of a tax debt lawyer Hartford, CT relies on, you should speak with the Law Offices of Ronald I. Chorches. We understand the stress and anxiety that financial problems can cause and when it comes to your taxes, we want to help make sure you are filing correctly, whether it is your personal taxes or your business taxes. Have any questions regarding taxes or need help when it comes to different problems related to taxes (like estate taxes, property taxes, or federal income taxes)? Call our office today. We are here to help you when you are running into problems.
What do tax debt attorneys do?
Many people do not realize that you can have an attorney who will help you out in financial situations, whether it is filing for bankruptcy, settling on debt, or working with you on tax problems. When you work with a tax debt attorney you can rely on in Connecticut, you are getting someone you can consult with who will help guide you through the different laws and regulations of taxes. Like every field of law, you want a tax debt lawyer who specializes in finances and understands your state’s laws regarding taxes.
How can a tax debt lawyer help me?
If you are concerned because you owe back taxes, you may be looking at tax seizures or wage garnishments. When you work with a reliable tax debt lawyer, they may be able to help you create a payment plan or discuss negotiation options. Because tax laws can be so intricate and confusing, working with a tax debt lawyer can help you when you are just starting out in debt or when you are in deep debt. Your lawyer is going to be a skilled negotiator who has had experience speaking with collectors and with the IRS which will be a huge benefit when it comes to settling your tax debt problems.
Do tax debt lawyers help with both personal taxes and business taxes?
When you work with a tax debt lawyer, know that they can help you out with your tax problems whether it is for your business or for your personal taxes. They will know the ins and outs of the different laws so that they can help you come to a manageable solution. Want to learn more about tax debt lawyers? Call the Law Offices of Ronald I. Chorches today.
Let a Hartford, CT Tax Debt Lawyer Help
If you are facing issues with tax debt and don’t know where to turn, the legal team at The Law Offices of Ronald I. Chorches can help. Call our office today to meet with a tax debt lawyer Hartford, CT clients trust.